Pain and suffering compensation is calculated by multiplying special damages by a certain factor or by using a daily rate for each day someone has lived with pain and suffering since an accident, according to AllLaw.com. These methods are used by insurance companies when attempting to settle an injury claim.Know More
Insurance companies may multiply special damages, or the calculable losses arising from an accident, by a factor between 1.5 and 5. For instance, if someone's medical bills, car replacement, attorney's fees and time off work amounted to $100,000, the pain and suffering compensation may be between $150,000 and $500,000 plus the special damages, notes AllLaw.com. The multiplier takes into account the prospects for a fast recovery, day-to-day dealings with the injury and if another party was responsible for the accident that caused the injury.
A daily rate may be determined by how much work an injured party misses due to an injury, states AllLaw.com. If the person misses 100 days of work and makes $100 per day, the pain and suffering settlement is $10,000 using the daily rate, or per diem, method.
In a court case, a judge does not necessarily give a jury instructions on how to calculate pain and suffering in a civil case, according to Nolo. A jury may award more money based on the credibility of the plaintiff, likeability of the injured and the documentation to back up the plaintiff's claims in court.Learn more in Financial Calculations
The capital gains yield of a stock can be calculated by dividing the change in price of the stock after the first period by the original price. Investopedia explains that the formula for this is (P1 - P0) / P0, where P1 equals the original price paid and P0 equals the price after the first period.Full Answer >
Profit on return is calculated by subtracting a unit's selling price from the cost to produce, dividing that difference by the selling price and multiplying that number by 100. This equation gives the percentage margin of profit made on each unit.Full Answer >
The compound annual growth rate, or CAGR, of an investment is calculated by dividing the ending value by the beginning value, taking the quotient to the power of one over the number of years the investment was held and subtracting the entire number by one. Then, turn the answer into a percentage from decimal form. The CAGR allows you to see an investment without all the ups and downs as if it had grown at an even, steady pace over the years.Full Answer >
According to the Internal Revenue Service, fair market value can be calculated based on the current selling price of the property, the price of comparable goods, the cost to replace the item or the opinion of experts on an items value. No specific formula can universally calculate FMV.Full Answer >