(a) The present value of two years' back pay. The plaintiff's annual salary for the last two
years would have been $40,000 and $45,000, respectively.
(b) The present value of five years' future salary. You assume the salary will be $58,000 per year.
(c) $250,000 for pain and suffering. (d) $20,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an APR of 6.5 percent, what is the size of the settlement? If you were the plaintiff, would you like to see a higher or lower interest rate?
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