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Anne was injured in an automobile accident on November 1 , 2 0 1 1 and has not worked since the date of the accident.
Anne was injured in an automobile accident on November and has not worked since the date of the accident. She alleges it is unlikely that she will ever be able to return to work. She is a college graduate and worked as an assistant manager at a retail store. ASSUMPTIONS: Anne was born on January Anne will not return to work over her remaining worklife expectancy Present value calculations are based on a trial date of September Annes earnings would increase at an average annual rate of percent over her worklife expectancy Anne received retirement contributions equals to percent of her annual salary Anne received health care insurance coverage with an annual cost of $ from her employer. The growth rate is Anne requires household services at an annual cost of $ as of the date of the accident Anne will need household services over her lifetime Household services are estimated to grow at the rate of projected inflation. The growth rate is Anne incurred medical costs totaling $ for surgery performed in February Anne will incur physical therapy costs of $ per year from the trial date through the end of her life. The growth rate is Anne earned an annual salary of $ at the time of the accident The remaining work life expectancy is years. Date at end of work life expectancy is Date at end of life expectancy is Discount rate is Required: What are the economic losses to Anne Lewis resulting from an accident on November Instructions: Lost fringe benefits lost retirement lost health insurance Use the following table format to show the summary of loss calculations: Lost EarningsLost Fringe BenefitsHouseholdMedical ExpensesTotal LossesPast losses before the trial date Future losses after the trial date Totals Notes: You are required to show all your calculationsRemember that you need to calculate the lost earnings and lost fringe benefits till Date at end of work life expectancy However, you need to calculate the household and medical expenses till Date at end of life expectancy
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