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A young medical doctor was injured. You were asked to calculate the present value of his earnings potential as a doctor. His employment income
A young medical doctor was injured. You were asked to calculate the present value of his earnings potential as a doctor. His employment income for next year was expected to be $353,000. Assume for simplicity, a single payment at the end of each year. If the growth rate of his income is forecasted at 3% and a rate of return of 6%, compounding annually over a 30-year career. Using the above information, estimate the size of the court award in today's dollars. Select one: a. $6,879,348 b. $6,882,639 c. $6,793,944 d. $6,764,124 e. $6,886,953
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