Megan Alexander was injuried in an auto accident on December 31, 2019. She has been deemed...

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Megan Alexander was injuried in an auto accident on December 31, 2019. She has been deemed by medical and vocational experts to be completely disabled from her ability to complete any kind of employment function. As of the date of her injury, she was earning an annual salary of $100,000 and was scheduled to receive a raise of 2.50%, starting on Janaury 1, 2020. The total healthcare cost paid by the employer is $12,000 in 2019 and is expected to rise 4%, starting January 1, 2020. The insurance company has agreed to compensate her for lost wages and benefits for the year 2020, with one payment each year on the final day of the year (December 31). Her company encourages retirement no later than a person's 65th birthday and Megan planned to retire on her 65th birthday, January 1, 2045. There are no lost pension benefits nor lost household services. The settlement agreement requires that the insurance company place the present value of lost wages and benefits into a trust for distribution at the end of the year. Other important facts and information are as follows: Economic Damages Assumptions for Megan Alexander Name of Injured: Date of Birth: Sex: Ethnicity: Marital status: Megan Alexander 1/1/1980 Female Hispanic Never Married Children: Age/Date of Injury: Age/Date of Planned Retirement: Age/Life Expectancy: Annual Amounts: None 40 12/31/2019 65.00 Years 1/1/2045 75.9 Years 11/16/2055 Current Income Mitigating Income Current Healthcare Taxes: $100,000 $0 $12,000 None Current Healthcare Taxes: Risk of Unemployment: $12,000 None 2.00% Wage Growth Rate: 2.50% Health Care Growth Rate: 4.00% Discount Rate (U.S. Treasury website): 20 Years - Future Loss of Income 3.00% National Vital statistics Data are as follows: Source: National Vital Statistics Volume 66, No. 4, August 2017 Table 12. Hispanic Females Age Number Surviving to Age X Age Number Surviving to Age X Age Number Surviving to Age X 40 98359 50 97104 60 94063 41 98281 51 96898 61 93591 42 98197 52 96675 62 93076 43 98105 53 96432 63 92518 44 98003 54 96169 64 91922 45 97889 55 95885 65 91292 46 97762 56 95578 66 90626 47 97621 57 95246 67 89919 48 97465 58 94886 68 89166 49 97292 59 94493 69 88358 Use the following template to estimate the "Present Value of Future Loss of Income and Benefits:" Estimate of Megan Alexander Income (Loss) (b) (c) DOB 1/1/1980 Year End 96 Age Year 2.50% 7.65% (d) 4.00% Projected Hourly Wages Loss FICA Lost Health Care 12/31/2019 Injury 40.00 $100,000 $12,000 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Present Value of Future Loss of Income & Benefits (e) 2.00% Risk of Unemployment (f) (h) 3.00% Loss before P(Survival) and Discounting Number Alive, Vital Stats Probability (Survival) Discount Factor P.V. Income Loss

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