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Category > Economics Posted 17 May 2017 My Price 8.00

Suppose a worker was accidentally killed on the job

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It! Suppose a worker was accidentally killed on the job due to negligence on the part of her employer. As a result, the worker’s family is suing the emfloyer, asking to be
awarded the present discounted vahe ofthe eamings that the worker would have received from herjob had she not been killed. Suppose the worker’s salary at the time of her death was $55,000, which she muld have earned in the present year, and that her earnings would have grown by
$3,000 each year for the remainder of her career. It the writer was otherwise planning to retire atterfive more years ofemployment and it the interest rate is 6
percent, then what is the present discounted value of her eamings for the lawsuit? For simplicity. assume that had the worker not been killed atwork. she would have
lived for at least five more years with certainty. The present discounted value ofthe worker's earnings is S . Entera emu-Jeni: rasponm rounded to we deco-net places.) If we instead were uncertain that the worker muld otherwise have lived five more years, then the present discounted value ct her earnings would have been
lj the present discounted value of her eamings if we were certain that she wodd have lived five more years. greater than
equal to less than

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SuperTutor
(15)
Status NEW Posted 17 May 2017 07:05 AM My Price 8.00

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