Part 4:

1. A woman has been injured in an automobile accident and as a result is permanently disabled for life. (The accident was not her fault.) She is 35 years of age and had planned on working until age 70. As a potential college professor, she was about to start a job that paid $50,000 annually. Using 6%, what is the amount of lost income in present-day dollars?

2. Additionally, she faces annual medical bills of $30,000, all of which are related to the accident. Her life expectancy is age 85. Using 6%, what is the amount of the medical expenses in present-day dollars?

3. Also, during retirement she had planned on receiving $75,000 per year. What is the present-day value of the lost pension? Note: This part requires two calculations.

4. How much should she sue for in court in terms of damages and lost compensation ? Ignore attorney fees?