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Benny Was Seriously Injured at His Place of Employment and Can

Question 92

Essay

Benny was seriously injured at his place of employment and can no longer work. If Benny hadn't been injured, he would have worked five more years and would have earned $60,000 each year. What is the present discounted value of Benny's lost earnings at a 5% interest rate?

Correct Answer:

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PDV = 60,000/(1.05) ...

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