Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work :) Loyd is a divorce attorney who prectices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a

please show work :) image text in transcribed
image text in transcribed
Loyd is a divorce attorney who prectices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professiona organization for divorce attorneys. The membership dues for the ADLA are $750 per year and must be paid at the beginning of each year. For instance, membershup 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 todoy for $8,000 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 approprate annual interest rate is 7.9%. What is the minimum number of years that Loyd must remain a member of the ADUA so that the lufetime membership is cheaper (on a present value basis) than paying 5150 in annual mermbership dues? (Note: Round your answer up to the nearest year.) 17 years 18 years 70 years 14 years You have a partnership stake an a business that poys you equal payments of $3,000 at the end of each year for thie next five years. If the annual interest rote stays constant at 8%, what is the value of these payments in todny's dollars? Round your answer to the nearest whole dollar. $10,181$11,978$12,936514,973 You found out that now you are going to receive payments of $8,000 for the next 15 years. You will receive these payments at the beginning of each year. The annuat interest rate will remain constant at 15%. What is the present value of these payments? Round your answer to the nearest whole dober. $43,037572,625$46,779$53,796

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trading Strategies For Capital Markets

Authors: Joseph Benning

1st Edition

0071726233

More Books

Students also viewed these Finance questions

Question

How are resources allocated?

Answered: 1 week ago

Question

Evaluate three pros and three cons of e-prescribing

Answered: 1 week ago