Question
In: Finance
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American...
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 7.1%. 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.)
16 years
22 years
20 years
18 years
Solutions
jeff jeffy answered 2 months agoRelated Solutions
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American...
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...
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American...
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...
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American...
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...
Antonio is a divorce attorney who practices law in New York City. He wants to join...
Antonio is a divorce attorney who practices law in New York
City. He wants to join the American Divorce Lawyers Association
(ADLA), a professional organization for divorce attorneys. The
membership dues for the ADLA are $550 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...
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Charles wants to
relocate to Florida. He decided to sell his rental
property, which is located in Brooklyn, NY. Charles accepted the
following terms:
Charles received
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the outstanding balance at the time the transaction closed).
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Charles wants to relocate to Florida. He decided to sell his rental property, which is located in...
Charles wants to relocate to Florida. He decided to
sell his rental property, which is located in Brooklyn, NY. Charles
accepted the following terms:
Charles received $1,200,000 in cash and was relieved of $800,000
mortgage. (this was the outstanding balance at the time the
transaction closed). Charles was responsible for broker's fees and
legal costs associated with transferring the mortgage of $35,000
and $17,500, respectively.
Charles' adjusted basis in the rental property is $600,000. (The
$600,000 is net of $750,000 of...
There is a man who always postpones assignments and anything he wants to do. He always...
There is a man who always postpones assignments and anything he
wants to do. He always comes up with good plans but fails to
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starts early to read it to the end. He almost always ends up not
completing the book. Explain the reasons for this attitude and
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Respond to a salesperson who dresses the way he or she
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Contract law?using IRAC method to answer the question. David owns a music store. He wants to...
Contract law?using IRAC method to answer the question.
David owns a music store. He wants to encourage more customers
to visit the store so he decides that he will put in massage chairs
for customers to use when listening the samples of music. David
enters a contract where he will hire 5 massage chairs from Emily
for a price of $300/month for six months. Three months later, David
discovers that the massage chairs are not bringing any additional
business. David...
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