In 2002 the ninth circuit court agreed that the punitive


In 2002, the Ninth Circuit court agreed that the punitive damages were too high given a US Supreme Court decision that punitive damages should be commensurate with the actual damages. The Circuit court sent the case back to Judge Holland where he reduced the award to from $5 billion to $4 billion in punitive damages. The billion dollar reduction was worth more than a billion dollars due to the time value of money. At 5% per year interest compounded monthly for 8 years, what was the reduction actually worth in 2002?

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Microeconomics: In 2002 the ninth circuit court agreed that the punitive
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