Answer: 206225.56

Problem 52.1 An insurance company is making annual payments under the settlement pro- visions of a personal injury lawsuit. A payment of $24,000 has just been made and ten more payments are due. Future payments are indexed to the Con- sumer Price Index which is assumed to increase at 5% per year. Find the present value of the remaining obligation if the assumed interest rate is 8%. Use the exact value of