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 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$$ back pays. The plaintiff$$s annual salary for the last two years Have been $$43,000$ and $$46,000$ respectively.

B$.$ The present value of five years future salary will be $$51,000$ per year.

C$.$ $$150,000$ for pain and suffering.

D$.$ $$20,000$ court costs

Assume that the salary payments are equal to the amounts paid at the end of each month. If the interest rate you choose is EAR of $5\mathrm{.}9\%,$ what is the size of the settlement? If you were the plaintiff, would you like to see a higher or lower interest rate?