Chegg, I really need help with this question. Please show me how you arrive at t

Question

Chegg, I really need help with this question. Please show me how you arrive at the answer by showing your work (step by step). The more work you show, the better it would help me understand the question and how to approach it in the future. It is important that I answer this question because I need it for an important assignment. Thank you.

We win a judgement of $200,000 now for pain and suffering. The defendant will have to pay us next year. Additionally, he will have to pay us our salaries for 5 years. The salary 2 years ago was $100,000. The increase is 4% yearly. We deserve 3 more salaries for the next 3 years. Derive the payment he will have to give us next year, if the discount rate is 5%. Assume all data occur at the end of the year.

Explanation / Answer

amount of salary 2 years ago 100000 amount of salary at the end of today's time 100000*(1.04)^2 108160 future value of payment calculations related to salary of next 3 years lum sum amount next year 200000 year 3 112486.4 107129.9 salary payment for next 3 years $318,338.58 Year 4 116985.856 106109.6 amount to be received in next 518338.5769 Year 5 121665.2902 105099.1 sum of next 3 years salary 351137.5462 318338.6 present value of the next year cash flow 518338.5769 present value of future salary payment 318338.6

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