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You are serving on a jury. a plaintiff is suing the city for injuries sustained after a freak street sweeper accident. in the trial, doctors

You are serving on a jury. a plaintiff is suing the city for injuries sustained after a freak street sweeper accident. in the trial, doctors testified that it will be five years before the plaintiff is able to return to work. the jury has already decided in favor of the plantiff. you are the foreperson of the jury and propose that the jury give the plantiff an award to cover the following: (1) the present value of two years back pay. the plaintiffs annual salary for the last two years would have been 39000 and 43000 respectively. (2) the present value of five years future salary. you assume the the salary will be 47000 per year. (3) 150000 for pain and suffering. (4) 25000 for court costs. assume that the salary payments are equal amounts paid at the end of each month. if the appropriate rate you choose is an EAR of 7.4 percent, what is the size of the settlement? if you were the plantiff, would you like to see a higher or lower intrest rate?

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