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A 56 year-old roofer falls off a roof and can no longer work as a roofer. however, he can be a greeter at WalMart. His accident happens on January 1 2015 his 56th birthday. what is the present value of his lost earnings.
Also, his earnings as a roofer would have been $35000 in 2015, the growth rate for both stream of earnings are 2% per year. the best earnings are to be caculated up to december 31 2016. future earnings begin juanuary 1 2017. when he is 58.
his worklife expectancy is until age 64, for discount rate, use 4%. at Walmart, he can earn $15000 a year, beginning on junuary 1 2017. his benefit in each job equal 15% of his salary.
1. how much is lost earnings, past and future, as a roofer?
2.the present value of future earnings as a greeter?
3. total lost earning?
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