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For purposes of compensation, an actuary working for a lawyer estimates the annual earnings of a September 11th victim that died at the Twin Towers at age 32.
The victim was making $95,000 a year and a stream of payments for that amount would have likely accrued to him annually until retirement at age 65.
The actuary knows that this is an ordinary annuity problem. She assumes, as is usual, that the victim's salary would grow in tandem with inflation, which for years has hovered at around at 3% annually.
What is the future value of this annuity, the minimum basis for a possible settlement with the relatives of the victim, if a fair settlement were indeed on the table?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
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