Question
In answering the problem please do as thorough a calculation as you can based on the facts presented.In addition, and as part of your answer,
In answering the problem please do as thorough a calculation as you can based on the facts presented.In addition, and as part of your answer, please state any additional information you would like to see to do a more thorough calculation. In performing the calculations relating to these problems assume a discount rate of 2% a year and use the probability of dying table on page 12-11 of the textbook.The employer's share of FICA tax is 7.65%
Age Probability of Dying Probability of Being Alive
56 -- 1.000000
57 -- 1.000000
58 0.009315 0.990685
59 0.009951 0.990049
60 0.010610 0.989390
61 0.011321 0.988679
62 0.012105 0.987895
63 0.013010 0.986990
64 0.014070 0.985930
65 0.015319 0.984681
Ms. S., age 58, was terminated from her employment as a controller at XYZ Corporation and replaced by the owner's daughter who needed a job.Ms. S. had worked in the controller position for ten years and earned $100,000 annually at the time of her termination of employment.Her wages had increased 1.5% each year for the past ten years.She was employed by other employers prior to beginning her employment at XYZ Corporation ten years ago.Ms. S. has retained you to provide an expert report on her behalf in a lawsuit she has filed for wrongful termination.Do a calculation of what you believe her total damage figure should be in that lawsuit.In addition, specify any additional information you feel you would need to prepare a more detailed calculation.
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