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....VIVA 11:22 AM Expert Q&A Done 2. (10 marks). Anna Waldheim was seriously injured in an industrial accident She sued the parties and was awarded

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....VIVA 11:22 AM Expert Q&A Done 2. (10 marks). Anna Waldheim was seriously injured in an industrial accident She sued the parties and was awarded a judgment of $2,000,000. Today, she and her atomey are aending a setlement conference with the defendants. The defendants have made an initial offer of $156,000 per year for 25 years. Anna plans to counteroffer at $25,000 per year for 25 years Bo the offer and the countoroner have a present value of S2,000,000, the amount ofthe judgment Both asume payments each year. at the end of a. What interest rate assumption have the defendants used in their offer (rounded so the nearest whole percent)? (2 marks) nearest whole percent)? (2 marks) payment would be acceptable to her? Make a proposal letter addressed to b.what interest rate assumption that Anna and her lawyer used in their connerott" (rounded to th E. Anna is willing to settle for an annuity that carries an interest rate assumption of 9%. What annual defendants. (6 maks)

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