Yesterday you graduated with your MBA and now you are driving to work for your new job which pays you an annual starting salary of $90,000. You expect annual raises of 5% and you live in a tax-free world. You believe you have 35 years of working years ahead of you. Sadly, on your way to work, you are involved in a serious car accident that leaves you unable to ever work again. You sue for all the salary you have lost by not being able to work for the rest of your life. If an appropriate discount rate is 10%, how much should you expect to receive in today's dollars as compensation for lost wages only?

In column A set up a timeline starting at year 2021 (our time 0) and ending at time 35. In column B, estimate your expected salary for your working years. In D1, use a formula to find the present value of all your lost wages.