If a Court Awards $1 Million to Compensate an Injured

question 74

True/False

If a court awards $1 million to compensate an injured plaintiff for medical bills, loss of wages, and pain and suffering, this is an example of compensatory damages.

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Definitions:

Future Value

The value of a current asset at a specified future date, based on an expected rate of growth or return.

Annuity Due

An annuity for which the payment is due immediately at the beginning of each period, rather than at the end.

Ordinary Annuities

Identical financial amounts distributed at the termination of back-to-back periods, within a set period.

Annuities Due

An annuity for which the payment is due at the beginning of each period instead of at the end, often used in lease agreements and insurance premiums.