Computation of Multipliers © 2001 Strauss & Shavelle

This spreadsheet computes multipliers for the cost of future care in two ways:

1. The actuarially correct method, which is based on the chances that the Claimant will survive 1 more year,
2 more years, …, 100 more years. The chance of surviving to age x is specified in the l(x) column of
the life table. The user must supply this l(x) column, as the life expectancy alone is not sufficient here.

2. The incorrect but widely used "annuity certain" method. This assumes that the Claimant lives exactly to his
life expectancy and then dies. In effect, the assumption is that l(x) remains at 100,000 until the life
expectancy, and then immediately falls to zero. The answers obtained here are the same as those given by
Table 38 of the English Ogden Tables and the Australian Personal Injury Litigation Data Card.

The spreadsheet is set up under the assumption of equal payments in each year; these are the 1.0's
in the "cost of care" column. If the costs are not equal, the concept of a multiplier is not well defined, and
one should instead compute the expected present value (EPV) of the costs.

Finally, you may require a multiplier under the assumption of a different life expectancy. If the new life
expectancy is only slightly different from the old one -- no more that 2-3 years different, say -- simply enter the
new life expectancy; the spreadsheet will re-compute the multiplier fairly accurately. If a more precise
calculation is required, or if the new life expectancy is very different from the old one, you will need to enter
the l(x) column that corresponds to the new life expectancy.

Multlipliers (Outputs)
Use Of Full Life Table 19.46 Requires inputs in cells C31 and C32, plus the l(x) and cost of care columns below
Expectancy Method 22.12 Requires inputs in cells C31 and C32, plus the cost of care column below

Required Inputs
Age At Trial 5.00 Use decimal notation. Example: 5 years 2 months is 5.17
Life Expectancy 32.00 As given by the life table, or specified
Net Discount Rate 2.5% Example: Enter 2.5% as 2.5

For questions or comments contact:

Robert Shavelle, PhD, FAACPDM

Life Expectancy Project
1439 -- 17th Avenue
San Francisco, CA 94122-3402
http://www.LifeExpectancy.org

Shavelle@LifeExpectancy.org
phone (415) 731-0240
fax (415) 731-0290

Specify the survival column, l(x), and the cost of care at each age

Cost of
Age l(x) Care

5.00 100000 1.0

 6.00 97404 1.0
7.00 94875 1.0
8.00 92413 1.0
9.00 90014 1.0
10.00 87677 1.0
11.00 85402 1.0
12.00 83185 1.0
13.00 81026 1.0
14.00 78922 1.0
15.00 76874 1.0
16.00 74878 1.0
17.00 72935 1.0
18.00 71041 1.0
19.00 69197 1.0
20.00 67401 1.0
21.00 65650 1.0
22.00 63942 1.0
23.00 62279 1.0
24.00 60660 1.0
25.00 59081 1.0
26.00 57542 1.0
27.00 56045 1.0
28.00 54586 1.0
29.00 53163 1.0
30.00 51781 1.0
31.00 50429 1.0
32.00 49144 1.0
33.00 47901 1.0
34.00 46723 1.0
35.00 45634 1.0
36.00 44555 1.0
37.00 43537 1.0
38.00 42483 1.0
39.00 41430 1.0
40.00 40310 1.0
41.00 39201 1.0
42.00 38073 1.0
43.00 36950 1.0
44.00 35775 1.0
45.00 34600 1.0
46.00 33395 1.0
47.00 32240 1.0
48.00 31034 1.0
49.00 29873 1.0
50.00 28715 1.0
51.00 27556 1.0
52.00 26352 1.0
53.00 25065 1.0
54.00 23795 1.0
55.00 22507 1.0
56.00 21215 1.0
57.00 19916 1.0
58.00 18630 1.0
59.00 17352 1.0
60.00 16112 1.0
61.00 14893 1.0
62.00 13695 1.0
 63.00 12535 1.0
64.00 11411 1.0
65.00 10312 1.0
66.00 9266 1.0
67.00 8285 1.0
68.00 7344 1.0
69.00 6456 1.0
70.00 5636 1.0
71.00 4872 1.0
72.00 4183 1.0
73.00 3558 1.0
74.00 3002 1.0
75.00 2504 1.0
76.00 2075 1.0
77.00 1708 1.0
78.00 1395 1.0
79.00 1126 1.0
80.00 896 1.0
81.00 705 1.0
82.00 551 1.0
83.00 425 1.0
84.00 323 1.0
85.00 243 1.0
86.00 180 1.0
87.00 132 1.0
88.00 95 1.0
89.00 69 1.0
90.00 49 1.0
91.00 34 1.0
92.00 24 1.0
93.00 17 1.0
94.00 11 1.0
95.00 8 1.0
96.00 5 1.0
97.00 3 1.0
98.00 2 1.0
99.00 1 1.0
100.00 1 1.0
101.00 0 1.0
102.00 0 1.0
103.00 0 1.0
104.00 0 1.0
105.00 0 1.0
106.00 0 1.0
107.00 0 1.0
108.00 0 1.0
109.00 0 1.0
110.00 0 1.0
Table. Adjusted and discounted costs of care: Use of full life table.
mid mid-year cost of adjusted cumulative
year discount care and cost
survival factor at this discounted this year
year probability 2.5% year cost forward
0 0.9883 0.9877 1.0 0.98 19.46
1 0.9651 0.9636 1.0 0.93 18.49
2 0.9425 0.9401 1.0 0.89 17.56
3 0.9204 0.9172 1.0 0.84 16.67
4 0.8989 0.8948 1.0 0.80 15.83
5 0.8778 0.8730 1.0 0.77 15.02
6 0.8573 0.8517 1.0 0.73 14.26
7 0.8372 0.8309 1.0 0.70 13.53
8 0.8176 0.8107 1.0 0.66 12.83
9 0.7984 0.7909 1.0 0.63 12.17
10 0.7797 0.7716 1.0 0.60 11.54
11 0.7614 0.7528 1.0 0.57 10.94
12 0.7436 0.7344 1.0 0.55 10.36
13 0.7262 0.7165 1.0 0.52 9.82
14 0.7092 0.6990 1.0 0.50 9.30
15 0.6925 0.6820 1.0 0.47 8.80
16 0.6763 0.6654 1.0 0.45 8.33
17 0.6604 0.6491 1.0 0.43 7.88
18 0.6449 0.6333 1.0 0.41 7.45
19 0.6298 0.6179 1.0 0.39 7.04
20 0.6150 0.6028 1.0 0.37 6.65
21 0.6005 0.5881 1.0 0.35 6.28
22 0.5864 0.5737 1.0 0.34 5.93
23 0.5726 0.5597 1.0 0.32 5.59
24 0.5592 0.5461 1.0 0.31 5.27
25 0.5460 0.5328 1.0 0.29 4.97
26 0.5333 0.5198 1.0 0.28 4.67
27 0.5211 0.5071 1.0 0.26 4.40
28 0.5094 0.4947 1.0 0.25 4.13
29 0.4984 0.4827 1.0 0.24 3.88
30 0.4878 0.4709 1.0 0.23 3.64
31 0.4776 0.4594 1.0 0.22 3.41
32 0.4674 0.4482 1.0 0.21 3.19
33 0.4571 0.4373 1.0 0.20 2.98
34 0.4464 0.4266 1.0 0.19 2.78
35 0.4354 0.4162 1.0 0.18 2.59
36 0.4244 0.4060 1.0 0.17 2.41
37 0.4132 0.3961 1.0 0.16 2.24
38 0.4018 0.3865 1.0 0.16 2.07
39 0.3901 0.3771 1.0 0.15 1.92
40 0.3782 0.3679 1.0 0.14 1.77
41 0.3663 0.3589 1.0 0.13 1.63
42 0.3544 0.3501 1.0 0.12 1.50
43 0.3424 0.3416 1.0 0.12 1.38
44 0.3307 0.3333 1.0 0.11 1.26
45 0.3188 0.3251 1.0 0.10 1.15
46 0.3068 0.3172 1.0 0.10 1.05
47 0.2939 0.3095 1.0 0.09 0.95
48 0.2807 0.3019 1.0 0.08 0.86
49 0.2675 0.2946 1.0 0.08 0.77
50 0.2540 0.2874 1.0 0.07 0.69
 51 0.2404 0.2804 1.0 0.07 0.62
52 0.2267 0.2735 1.0 0.06 0.55
53 0.2131 0.2669 1.0 0.06 0.49
54 0.1996 0.2603 1.0 0.05 0.44
55 0.1863 0.2540 1.0 0.05 0.38
56 0.1732 0.2478 1.0 0.04 0.34
57 0.1602 0.2418 1.0 0.04 0.29
58 0.1476 0.2359 1.0 0.03 0.25
59 0.1352 0.2301 1.0 0.03 0.22
60 0.1231 0.2245 1.0 0.03 0.19
61 0.1116 0.2190 1.0 0.02 0.16
62 0.1005 0.2137 1.0 0.02 0.14
63 0.0898 0.2085 1.0 0.02 0.11
64 0.0797 0.2034 1.0 0.02 0.10
65 0.0702 0.1984 1.0 0.01 0.08
66 0.0614 0.1936 1.0 0.01 0.07
67 0.0533 0.1889 1.0 0.01 0.05
68 0.0459 0.1843 1.0 0.01 0.04
69 0.0392 0.1798 1.0 0.01 0.04
70 0.0332 0.1754 1.0 0.01 0.03
71 0.0280 0.1711 1.0 0.00 0.02
72 0.0234 0.1669 1.0 0.00 0.02
73 0.0194 0.1629 1.0 0.00 0.01
74 0.0159 0.1589 1.0 0.00 0.01
75 0.0129 0.1550 1.0 0.00 0.01
76 0.0103 0.1512 1.0 0.00 0.01
77 0.0082 0.1475 1.0 0.00 0.00
78 0.0065 0.1439 1.0 0.00 0.00
79 0.0050 0.1404 1.0 0.00 0.00
80 0.0039 0.1370 1.0 0.00 0.00
81 0.0029 0.1337 1.0 0.00 0.00
82 0.0022 0.1304 1.0 0.00 0.00
83 0.0017 0.1272 1.0 0.00 0.00
84 0.0012 0.1241 1.0 0.00 0.00
85 0.0009 0.1211 1.0 0.00 0.00
86 0.0006 0.1181 1.0 0.00 0.00
87 0.0005 0.1153 1.0 0.00 0.00
88 0.0003 0.1124 1.0 0.00 0.00
89 0.0002 0.1097 1.0 0.00 0.00
90 0.0002 0.1070 1.0 0.00 0.00
91 0.0001 0.1044 1.0 0.00 0.00
92 0.0001 0.1019 1.0 0.00 0.00
93 0.0000 0.0994 1.0 0.00 0.00
94 0.0000 0.0970 1.0 0.00 0.00
95 0.0000 0.0946 1.0 0.00 0.00
96 0.0000 0.0923 1.0 0.00 0.00
97 0.0000 0.0900 1.0 0.00 0.00
98 0.0000 0.0878 1.0 0.00 0.00
99 0.0000 0.0857 1.0 0.00 0.00
100 0.0000 0.0836 1.0 0.00 0.00
Table. Adjusted and discounted costs of care: Expectancy method.
mid-year cost of adjusted cumulative
discount care and cost
future survival factor at this discounted this year
year probability 2.5% year cost forward
1 1.00 0.9877 1.0 0.99 22.12
2 1.00 0.9636 1.0 0.96 21.13
3 1.00 0.9401 1.0 0.94 20.17
4 1.00 0.9172 1.0 0.92 19.23
5 1.00 0.8948 1.0 0.89 18.31
6 1.00 0.8730 1.0 0.87 17.42
7 1.00 0.8517 1.0 0.85 16.54
8 1.00 0.8309 1.0 0.83 15.69
9 1.00 0.8107 1.0 0.81 14.86
10 1.00 0.7909 1.0 0.79 14.05
11 1.00 0.7716 1.0 0.77 13.26
12 1.00 0.7528 1.0 0.75 12.49
13 1.00 0.7344 1.0 0.73 11.74
14 1.00 0.7165 1.0 0.72 11.00
15 1.00 0.6990 1.0 0.70 10.28
16 1.00 0.6820 1.0 0.68 9.59
17 1.00 0.6654 1.0 0.67 8.90
18 1.00 0.6491 1.0 0.65 8.24
19 1.00 0.6333 1.0 0.63 7.59
20 1.00 0.6179 1.0 0.62 6.96
21 1.00 0.6028 1.0 0.60 6.34
22 1.00 0.5881 1.0 0.59 5.74
23 1.00 0.5737 1.0 0.57 5.15
24 1.00 0.5597 1.0 0.56 4.57
25 1.00 0.5461 1.0 0.55 4.01
26 1.00 0.5328 1.0 0.53 3.47
27 1.00 0.5198 1.0 0.52 2.93
28 1.00 0.5071 1.0 0.51 2.41
29 1.00 0.4947 1.0 0.49 1.91
30 1.00 0.4827 1.0 0.48 1.41
31 1.00 0.4709 1.0 0.47 0.93
32 1.00 0.4594 1.0 0.46 0.46
33 0.00 0.4482 1.0 0.00 0.00
34 0.00 0.4373 1.0 0.00 0.00
35 0.00 0.4266 1.0 0.00 0.00
36 0.00 0.4162 1.0 0.00 0.00
37 0.00 0.4060 1.0 0.00 0.00
38 0.00 0.3961 1.0 0.00 0.00
39 0.00 0.3865 1.0 0.00 0.00
40 0.00 0.3771 1.0 0.00 0.00
41 0.00 0.3679 1.0 0.00 0.00
42 0.00 0.3589 1.0 0.00 0.00
43 0.00 0.3501 1.0 0.00 0.00
44 0.00 0.3416 1.0 0.00 0.00
45 0.00 0.3333 1.0 0.00 0.00
46 0.00 0.3251 1.0 0.00 0.00
47 0.00 0.3172 1.0 0.00 0.00
48 0.00 0.3095 1.0 0.00 0.00
49 0.00 0.3019 1.0 0.00 0.00
50 0.00 0.2946 1.0 0.00 0.00
51 0.00 0.2874 1.0 0.00 0.00
 52 0.00 0.2804 1.0 0.00 0.00
53 0.00 0.2735 1.0 0.00 0.00
54 0.00 0.2669 1.0 0.00 0.00
55 0.00 0.2603 1.0 0.00 0.00
56 0.00 0.2540 1.0 0.00 0.00
57 0.00 0.2478 1.0 0.00 0.00
58 0.00 0.2418 1.0 0.00 0.00
59 0.00 0.2359 1.0 0.00 0.00
60 0.00 0.2301 1.0 0.00 0.00
61 0.00 0.2245 1.0 0.00 0.00
62 0.00 0.2190 1.0 0.00 0.00
63 0.00 0.2137 1.0 0.00 0.00
64 0.00 0.2085 1.0 0.00 0.00
65 0.00 0.2034 1.0 0.00 0.00
66 0.00 0.1984 1.0 0.00 0.00
67 0.00 0.1936 1.0 0.00 0.00
68 0.00 0.1889 1.0 0.00 0.00
69 0.00 0.1843 1.0 0.00 0.00
70 0.00 0.1798 1.0 0.00 0.00
71 0.00 0.1754 1.0 0.00 0.00
72 0.00 0.1711 1.0 0.00 0.00
73 0.00 0.1669 1.0 0.00 0.00
74 0.00 0.1629 1.0 0.00 0.00
75 0.00 0.1589 1.0 0.00 0.00
76 0.00 0.1550 1.0 0.00 0.00
77 0.00 0.1512 1.0 0.00 0.00
78 0.00 0.1475 1.0 0.00 0.00
79 0.00 0.1439 1.0 0.00 0.00
80 0.00 0.1404 1.0 0.00 0.00
81 0.00 0.1370 1.0 0.00 0.00
82 0.00 0.1337 1.0 0.00 0.00
83 0.00 0.1304 1.0 0.00 0.00
84 0.00 0.1272 1.0 0.00 0.00
85 0.00 0.1241 1.0 0.00 0.00
86 0.00 0.1211 1.0 0.00 0.00
87 0.00 0.1181 1.0 0.00 0.00
88 0.00 0.1153 1.0 0.00 0.00
89 0.00 0.1124 1.0 0.00 0.00
90 0.00 0.1097 1.0 0.00 0.00
91 0.00 0.1070 1.0 0.00 0.00
92 0.00 0.1044 1.0 0.00 0.00
93 0.00 0.1019 1.0 0.00 0.00
94 0.00 0.0994 1.0 0.00 0.00
95 0.00 0.0970 1.0 0.00 0.00
96 0.00 0.0946 1.0 0.00 0.00
97 0.00 0.0923 1.0 0.00 0.00
98 0.00 0.0900 1.0 0.00 0.00
99 0.00 0.0878 1.0 0.00 0.00
100 0.00 0.0857 1.0 0.00 0.00