Homework Help is Here – Start Your Trial Now!
Business
Finance
Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.)

Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.)

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter2: Working With The Tax Law
Section: Chapter Questions
Problem 1RP
See similar textbooks
icon
Related questions
Question
100%
5 X100 ry https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld-5829202317504197666520360810&eISBN=97... A S CENGAGE | MINDTAP I Chapter 4 Assignment Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. O 13 years O 15 years What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.) O 17 years F4 20 years MindTap - Cengage Le X 3 In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.75% annual interest rate, what is its value as of 2017 (391 years later)? C F5 % T 0 F6 O Y Grades for Tamarile fitex Aints utrac H ✈ F7 U MO 河 J 8 == F9 LOUW K F10 O F11 P ☀+ F12 ((( Q Search this co PrtSc + 11 Insert } ڈے Delete Backspac
Transcribed Image Text:5 X100 ry https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld-5829202317504197666520360810&eISBN=97... A S CENGAGE | MINDTAP I Chapter 4 Assignment Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. O 13 years O 15 years What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.) O 17 years F4 20 years MindTap - Cengage Le X 3 In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.75% annual interest rate, what is its value as of 2017 (391 years later)? C F5 % T 0 F6 O Y Grades for Tamarile fitex Aints utrac H ✈ F7 U MO 河 J 8 == F9 LOUW K F10 O F11 P ☀+ F12 ((( Q Search this co PrtSc + 11 Insert } ڈے Delete Backspac
udy Tools s Tips Tips DU ols aductory A+ X6 Uur Battal MindTap - Cengage Le X 11 https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld-5829202317504197666520360810&eISBN=97... A R F CENGAGE MINDTAP Chapter 4 Assignment F4 13 years 15 years What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.) 17 years 20 years In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.75% annual interest rate, what is its value as of 2017 (391 years later)? O $63,570,730,476.21 $74,789,094,677.89 $86,007,458,879.57 $98,721,604,974.81 F5 % G E F6 0 SORTE Y H for Femme Stc X9 rondsemplink Search X 13 Centesitysmc and X F7 河 F9 K LOUW F10 F11 P 0+ F12 PrtSc + 11 Insert Q SE 11 W Dele Back
Transcribed Image Text:udy Tools s Tips Tips DU ols aductory A+ X6 Uur Battal MindTap - Cengage Le X 11 https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld-5829202317504197666520360810&eISBN=97... A R F CENGAGE MINDTAP Chapter 4 Assignment F4 13 years 15 years What is the minimum number of years that Maria must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.) 17 years 20 years In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.75% annual interest rate, what is its value as of 2017 (391 years later)? O $63,570,730,476.21 $74,789,094,677.89 $86,007,458,879.57 $98,721,604,974.81 F5 % G E F6 0 SORTE Y H for Femme Stc X9 rondsemplink Search X 13 Centesitysmc and X F7 河 F9 K LOUW F10 F11 P 0+ F12 PrtSc + 11 Insert Q SE 11 W Dele Back
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Social Security Benefits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage
SEE MORE TEXTBOOKS