The time value of money concept can be applied in various situations and is a fundamental concept underlying other finanoal concepts. Consider the following example of the application of this concept. Jake is a divorce attorney who practices law in San Diego. He wants to join the American Divorce Lawyers Assocaation (ADLA), a professional organization for divorce attomeys. The membership dues for the ADLA are $550 per year and must be paid at the beginning of each year. For inctance, 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 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 7.5%. What is the minimum number of years that lake must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying 5550 in annual membership dues? (Note: Round your answer up to the nearest year.) 12 vears 14 years 16 vears 21 years In 1626, Dutchman Peter Minuit purchased Manhattan Island fom a local Mative American thbe. Hatonans estimate that the price he paid for the island was about 324 worth of goods, ineluding beads, trinkets, doth, kettles, and axe heads. Many people find it faughable that Manhattan tsland would be sold for 324 , but you need to consider the future value (FV) of that price in more current timest. In 1626, Dutchuman 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, induding beads, trinkets, doth, kettles, and axe heads. Many people find it laughable that Marihattan 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 4.00% annual interest rate, what is its value as of 2017 (391 years fater)? $93,253,648.69 $109,710,174.93 $126,166,701.17 5144,817,430.91