Category Archives: Legal Formulas

Formulas to help lawyers determine the value of a case or the merits of a deal.

Lottery Winner’s Dilemma: Lump Sum or Annuity? Calculating the Present Value of an Annuity.

What if you won the lottery tomorrow, and your jackpot was $60,000 a year for 15 years? That would come to $900,000!  But, of course, you would have to wait 15 years to collect it all. What if you could … Continue reading

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Present Value: What if I could get tomorrow’s money today?

Present value is the opposite of future value but can be calculated using the same formula.(For a review of future value, see our earlier post on January 14, 2012). Instead of asking what value present-day money will have in the … Continue reading

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Future Value of an Uneven Cash Flow — What’s it really worth?

You’ve been sued and you’re going to lose the case. Perhaps you should settle the case now and cut your losses. The only problem is that you can’t pay the damages in one lump sum;  you’ll need to pay them … Continue reading

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Future Value

What’s the future value of a thousand dollars? This week, the King of Formulas is giving a refresher course on the most basic formulas used in the fields of business, law, insurance and finance. We start today with the calculation for future … Continue reading

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