Lloyd is a divorce attorney who practices law in Florida He

Last updated: 6/11/2023

Lloyd is a divorce attorney who practices law in Florida He wants to join the American Divorce Lawyers Association ADLA a professional 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 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 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 appropriate annual interest rate is 7 9 What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper on a present value basis than paying 750 in annual membership dues Note Round your answer up to the nearest year 17 years 18 years 14 years O 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 laughable 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 4 25 annual interest rate what is its value as of 2012 386 years later 193 638 065 25 227 809 488 53 O 261 980 911 81