Question 6
You are hurt in a car accident and your lawyer wins a $100,000 settlement to be distributed as follows:
$20,000 immediate payment
$7,000 a year for ten years
$30,000 after ten years.
If the lawyer's fee is $10,000, what is the value of this settlement if the interest rate is 8 percent? Answer
in the format of 1,234.56.