What is the difference between the present value of the


A scientist is killed in a plane crash. It is anticipate that he could have earned $240,000 a year for the next 50 years. The attorney for he plaintiff's estate argues that the lost income should be discounted back to the present at 4%. The lawyer for the defendant's insurance company argues for a discounted rate of 8%. What is the difference between the present value of the settlement at 4% and 8%?

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Business Economics: What is the difference between the present value of the
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