Problem $11-3($Algo$)$ Effect of discount rate $[$LO$11-3]$

A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $$360,000$ a year for the next $30$ years. The attorney for the plaintiff$$s estate argues that the lost income should be discounted back to the present at $4$ percent. The lawyer for the defendant$$s insurance company argues for a discount rate of $10$ percent.

What is the difference between the present value of the settlement at $4$ percent and $10$ percent? Compute each one separately. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.