Question

# you win a judgement in an auto accident case for \$135,000 you immediately receive \$30,000 but...

you win a judgement in an auto accident case for \$135,000 you immediately receive \$30,000 but must pay your lawyer's fee of \$25,000 in addition you will receive \$3,500 a year for 20 years for a total of \$70,000 after which the balance owed \$35,000 will be paid if the interest rate is 7% what is the current value of your settlement? use appendix b and appendix d answer the question round your answer to the nearest dollar.

Current value = present value of cash inflows - lawyer fee

present value of cash inflows =  present value of \$3500 annuity for 20 years + present value of \$35,000 received after 20 years

present value of \$3,500 annuity for 20 years = \$3,500 * PVAF(7%, 20), where PVAF is the present value annuity factor. The value of PVAF(7%, 20) is found to be 10.594014 from the annuity tables. Present value = \$3500 * 10.594014 = \$37,079.05

present value of \$35,000 received after 20 years = \$35,000 * PVF(7%, 20), where PVF is the present value factor. The value of PVF(7%, 20) is found to be 0.2584 from the annuity tables. Present value = \$35,000 * 0.2584 = \$9,044

present value of cash inflows =   \$37,079.05 + \$9,044 = \$46,123.05

Current value = \$46,123.05 - \$25,000 = \$21,123.05

#### Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### You win a judgment in an auto accident case for \$100,000. You immediately receive \$25,000 but...

You win a judgment in an auto accident case for \$100,000. You immediately receive \$25,000 but must pay your lawyerâ€™s fee of \$15,000. In addition, you will receive \$2,500 a year for 20 years for a total of \$50,000, after which the balance owed (\$25,000) will be paid. If the interest rate is 7 percent, what is the current value of your settlement? PLEASE PROVIDE WHAT TO PLUG INTO A FINANCIAL CALCULATOR AND WHAT TO SOLVE FOR. DO NOT NEED...

• ### Case Scenario: A 23-year-old patient was the victim of a hit-and-run auto-pedestrian accident and suffered multiple...

Case Scenario: A 23-year-old patient was the victim of a hit-and-run auto-pedestrian accident and suffered multiple abrasions, a concussion, and a deep laceration of his left thigh. He was discovered approximately two hours after the incident and is now in the ER. His vital signs and hematocrit suggest that he has had a blood loss of about 2500 ml. A urinary catheter is inserted to monitor urine output, and fluid resuscitation is initiated while his wounds are cleaned and sutured....

• ### Consider a game where you roll a six-sided die and a four-sided die, then you subtract...

Consider a game where you roll a six-sided die and a four-sided die, then you subtract the number on the four-sided die from the number on the six-sided die. If the number is positive, you receive that much money (in dollars). If the number is negative, you pay that much money (in dollars). For example, you might roll a 5 on the six-sided die and a 2 on the four-sided die, in which case you would win \$3. You might...

• ### I need help.Thanks. Case Study 4 F garden retailer in 20 full-time and the plants and...

I need help.Thanks. Case Study 4 F garden retailer in 20 full-time and the plants and egrown Gardens, LLP, is a \$10 million nurse on retailer in Florida. Homegrown employs about 11-time and seasonal employees. The majority of plants and nursery stock that Homegrown sells es from Monromio Nurseries, a wholesaler based Alabama. Monromio is recognized throughout the South for the quality of the plants it grows and sells. Homegrown is generally happy to pay the premium prices that Monromio's...

• ### addition, the 1900 annually in ye uniform annu Show all work to receive full credit (attach...

addition, the 1900 annually in ye uniform annu Show all work to receive full credit (attach work). 1. An investor deposits \$15,000 in a mutual fund account starting in year 1. In year 2, the investor continues to make annual deposits, but decides to reduce the amount deposited by 10 percent each year. The ROR on the mutual fund is = 10%. How much will the investor have in the mutual fund by year 10? Your solution will be closest...

• ### Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business,...

Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a...

• ### Time Notes Evaluate de Info This problem contains three parts. In Part A. you are asked...

Time Notes Evaluate de Info This problem contains three parts. In Part A. you are asked to determine the parameters of the pront function - the contribution margin and the feed costs. You should not move on to Parts and Cuntil you get Part A correct, or until you use up all of your tries. The correct prent function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B...

• ### please solve the question for me.thank you Excel Online Structured Activity: Cash Budgeting Dorothy Koehl recently...

please solve the question for me.thank you Excel Online Structured Activity: Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of just how...

• ### Shaftel Ready Mix is a processor and supplier of concrete, aggregate, and rock products. The comp...

Shaftel Ready Mix is a processor and supplier of concrete, aggregate, and rock products. The company operates in the intermountain western United States. Currently, Shaftel has 14 cement- processing plants and a labor force of more than 375 employees. With the exception of cement powder, all materials (e.g., aggregates and sand) are produced internally by the company. The demand for concrete and aggregates has been growing steadily nationally. In the West, the growth rate has been above the national average....

• ### PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise A-9 (Algo) Derivatives;...

PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise A-9 (Algo) Derivatives; cash flow hedge; interest rate swap; shortcut method (LOA-3] Kipped On January 1, 2021, JPS Industries borrowed \$320,000 from Austin Bank by issuing a three-year, floating rate note based on LIBOR, with interest payable semi-annually on June 30 and December of each year. JPS entered into a three-year interest rate swap agreement on January 1, 2021, and designated the swap as a cash flow...