In an insurance settlement for bodily injury, a court awarded Mr. Goodman $103,600 for two years’...

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In an insurance settlement for bodily injury, a court awarded Mr. Goodman $103,600 for two years’ loss of wages of $4000 per month plus interest on the lost wages to the end of the two years. What effective rate of interest has the court allowed on the lost wages?View Solution:
In an insurance settlement for bodily injury a court awarded

Rochak · Accepted Answer

Money Awarded = $103,600
Wages = $4,000 per month
Number of Months = 24 months
Calculation for Effective Rate of Interest
Money Awarded = Wages * (((1+Effective Rate of Interest/12)^Number of Months)-1)/(Effective Rate of Interest/12)
$103,600 = $4,

In an insurance settlement for bodily injury, a court awarded Mr. Goodman $103,600 for two years’ loss of wages of $4000 per month plus interest on the lost wages to the end of the two years. What...

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