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The time value of monoy concept can be applied in various situations and is a fundamentai concept underlying other financial concepts. Consider the following example

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The time value of monoy concept can be applied in various situations and is a fundamentai concept underlying other financial concepts. Consider the following example of the application of this cond ot: Carlos is a divorce attorney who practices law in New York City. He wants to join the American Divorce Lowyers Association (ADLA), a professional organization for divorce attorneys. The membershlp dues for the ADLA are 5750 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and duen for the second year are payable one year from today. However, the ADU also has an option for members to buy a lifetime membership today for 37,000 and never have to pay annual membership dues. Obviously, the ufetime 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 8.9%. What is the minimum number of years that Carlos must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying 5750 in annual membership dues? (Note: Round your answer up to the nearest year.) 15 years 17 years 18 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 taughable 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 6.00% annual interest rate, what is its value as of 2017 ( 391 years later)? $160,038,136,567.39$188,280,160,667.52$216,522,184,767.65$248,529,812,081.13 The time value of monoy concept can be applied in various situations and is a fundamentai concept underlying other financial concepts. Consider the following example of the application of this cond ot: Carlos is a divorce attorney who practices law in New York City. He wants to join the American Divorce Lowyers Association (ADLA), a professional organization for divorce attorneys. The membershlp dues for the ADLA are 5750 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and duen for the second year are payable one year from today. However, the ADU also has an option for members to buy a lifetime membership today for 37,000 and never have to pay annual membership dues. Obviously, the ufetime 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 8.9%. What is the minimum number of years that Carlos must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying 5750 in annual membership dues? (Note: Round your answer up to the nearest year.) 15 years 17 years 18 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 taughable 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 6.00% annual interest rate, what is its value as of 2017 ( 391 years later)? $160,038,136,567.39$188,280,160,667.52$216,522,184,767.65$248,529,812,081.13

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