11. Moreon the time value of money The time value of money concept can be applied in vanous situations and is a fundamental concept underlying other financial concepts. Consider the following example of the application of this concept. Manuel is a divorce attorney who practices law in Houston. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $550 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 $5,000 and never have to pay annual membership dues. Obviously, the letime 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 7.5%. What is the minimum number of years that Manuel must remain a member of the ADA so that the lifetime membership is cheaper (on a present value basis) than paying 550 in annual membership dues? (Note: Round your answer up to the nearest year) 12 years 14 years 16 years 21 years in 4626, Dutchman Peter Minut purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the Island was about $24 worthy of goods, induding beads, trinkets, cloth, kettles, and axe heads. Many people fired it laughable that Manhattan Island would be sold for 324, but you need to consider the future value (FV) of that price in mor current times. If the 24 purcune prion could Have been invested at a 4,00% serual interest rate, what is its value as of 2017 (391 years later) 59,255,645.69 $109.710.174,93 5136,166,701.12 6144,01743091