Question

TABLE 1.1: Factual Basis for Evaluating the Economic Losses of Jackson L. Brown
1	Date of Birth				2/15/1960
2	Date of Death				9/6/1988
3	Age at time of death				28.66
4	Worklife Expextancy as of 9/6/88				31
5	Life Expectancy as of 9/6/88				44.54
6	Marital Status				Married
7	Sex				Male
8	Race				White
9	Education				High School Graduate
10	Occupation				Window Washer
11	Expected Trial Date				12/1/1989
12	Earning at time of death				25,000
13	Benefits				28.00%
14	Expected annual growth in wages				5.34%
15	Discount rate (3 yr. T-Note)				6.82%
1. Calculate the present value, at the time of Jackson's death, of his lost earning (including fringes) over his expected
worklife using the present value of annuity formula.
2. Check your answer to question 1 by calculating the Individual present values at each age and summing them.
(Calculate the undiscounted and discounted streams of income separately)
3. Discuss possible alternative approaches and problems associated with Your economic evaluation of lost wages.
4. Include a discussion of the analysis, as well as your recommendation, for this situation.

Answer 1

The table is as below with formulae in yellow: