safe investment rule

A rule applied in the computation of the present worth of a decedent's expected future earnings. Under the so-called "safe investment rule," the jury, in determining the present value of the decedent's expected future earnings, should use that rate of interest which, in the jury's considered judgment, is reasonable, just, and right under the circumstances, taking into consideration the evidence presented, the jury's knowledge of the prevailing interest rates within the limits prescribed by law in the area, and what rate of interest could fairly be expected from safe investments as made by a person of ordinary prudence, but without particular financial experience or skill. 22 Am J2d Dth § 125. See prudent investment theory.

Ballentine's law dictionary. . 1998.

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