You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident which was happened two years ago. 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 plaintiff.You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) the present value of two years' back pay.The plaintiff's annual salary for the last two years would have been $38,000 and $42,000, respectively.(b) The present value of five years' future salary, including the current year and four years thereafter.You assume the salary will be $45,000 per year.(c) $150,000 for pain and suffering.(d) $20,000 for court cost. The current market interest rate is 5%.

Please carefully identify key information as inputs of your financial calculator and record all calculation steps (keystrokes) for items (a) through (d).

(a)

(b)

(c)

(d)

Based on your above calculations, what is the size of the settlement?

If you were the plaintiff, would you like to see a higher or lower interest rate? Please provide numerical proof.You may use an interest rate higher or lower than 5% to recalculate the settlement.