Of Interest

It may be surprising to learn that a comprehensive economic calculation of pecuniary damages may require the use of different rates of annual increase as well as different interest rates for discounting future values. The fundamental reason for the differences is that different projected time periods of loss may be involved. For example, a loss of earnings may extend fifteen years until retirement, but a projected loss of ability to perform household services may extend for 30 years over a person’s remaining life expectancy.