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You tried to sneak a cappuccino into the movie theatre. It spilled on your leg and scalded you. Your lawyer says that you can expect
You tried to sneak a cappuccino into the movie theatre. It spilled on your leg and scalded you. Your lawyer says that you can expect a payout from the coffee shop's insurance company of
10,000$
per year for
10
years. The only catch is that the first payment won't happen until the court case is over in
2 years. What is the present value of your settlement as of today? Assume an interest rate of
3.2%
(how do you solve this with the present value of an annuity formula)
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