You win a judgment in an auto accident for $275,000. You will immediately receive $135,000 in cash, but must pay your lawyer’s fee of $91,666 out of…
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You win a judgment in an auto accident for $275,000. You will immediately receive $135,000 in cash, but must pay your lawyer’s fee of $91,666 out of that sum. In addition you will receive $5,500 per year for 20 years for a total of $110,000 after which the balance owed of $30,000 will be paid. If the interest rate is 7 percent, what is the current value of your settlement?
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