Damages, Interest & Settlement Math: Lost Profits, Statutory Interest & Case Value

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Project the revenue a food producer would have made without the breach, subtract what it actually made, deduct the costs it saved and find the month with the biggest loss.
• Credit the margin Kestrel earned on substitute sales, cap each month's credit at that month's loss, total the net loss and deduct an order it unreasonably declined.
• Look up the rate valid on any date, cut the interest period at every rate change, count the days in each slice and add up the simple interest from due date to judgment.
• Calculate the same interest claim with actual/365 and 30/360 day counts and with yearly compounding, and measure what the choice of method is worth.
• Find the end date for paid and unpaid invoices, count the days late without negative values, apply reference rate plus margin and total the claim with flat fees.
• Project eight years of lost earnings with pay growth and residual earning capacity, discount each year to today, total the present value with NPV and express it as a multiplier.
• Weight the trial outcomes by their probabilities, subtract own and adverse costs, compare the result with a settlement offer and solve for the win probability at which both are equal.
• Value fifteen yearly payments as one present value, find the discount rate at which they equal the lump sum, build a sensitivity table across rates and chart where the two offers cross.