Neb. Work. Comp. Ct., 1
Present value of annuity certain of $1.00 per week. Interest at 5 percent per annum with annual rests. Payment at end of week 365.2425 days to a year.
TO USE TABLES:
Find present value of $1.00 for number of weeks to be commuted; multiply the value so found by the weekly compensation rate.
EXAMPLE:
Weeks to be commuted, 215; weekly compensation rate, $62.00; present value of $1.00 for 215 weeks is $194.2141; multiplying $194.2141 by $62.00 produces the commuted value of $12,041.27.
EXAMPLE WHERE WEEKLY RATE CHANGES:
Weeks to be commuted, 1,100; first 175 weeks at $62.00; following 925 weeks at $47.00 (1,100 weeks at $47.00 per week plus 175 weeks at $15.00 per week running concurrently, beginning with the first week, produces the same result.) Present value of $1.00 for 1,100 weeks is $679.6809; multiplying $679.6809 by $47.00 produces $31,945.00. Present value of $1.00 for 175 weeks is $161.0426; multiplying $161.0426 by $15 produces $2,415.64. Adding $31,945.00 to $2,415.64 makes a total of $34,360.64, being the present worth of 1,100 weeks at the rates stated.
Neb. Work. Comp. Ct., 1