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Problem 7-23

You win a judgment in an auto accident case for $115,000. You immediately receive $30,000 but must pay your lawyer's fee of $20,000. In addition, you will receive $3,500 a year for 20 years for a total of $70,000, after which the balance owed ($15,000) will be paid. If the interest rate is 6 percent, what is the current value of your settlement? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $