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Kyoko is a divorce attorney who practices law in Miami. She wants to join the American Divorce Lawyers Association ( ADLA ) , a professional
Kyoko is a divorce attorney who practices law in Miami. She wants to join the American Divorce Lawyers Association ADLA a professional organization for divorce attorneys. The membership dues for the ADLA are $ 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 $ and never have to pay annual membership dues.
Obviously, the lifetime membership isnt a good deal if you only remain a member for a couple of years, but if you remain a member for years, its a great deal. Suppose that the appropriate annual interest rate is
What is the minimum number of years that Kyoko must remain a member of the ADLA so that the lifetime membership is cheaper on a present value basis than paying $ in annual membership dues? Note: Round your answer up to the nearest year.
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