1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dedylja [7]
2 years ago
7

Eleanor is a divorce attorney who practices law in Dallas. She wants to join the American Divorce Lawyers Association (ADLA), a

professional organization for divorce attorneys. The membership dues for the ADLA are $500 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 $4,500 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 8.5%. What is the minimum number of years that Eleanor must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the nearest year.)
Business
1 answer:
Stels [109]2 years ago
3 0

Answer:

15 years

Explanation:

Future value of Lumpsum = PV (1 + i)^n

PV = Present value = $4,500  

i = interest rate = 8.5%

n = no. of compounding period = 15 years

So, FV = 4,500 * (1 + .085)^15

= 4,500 * 3.3997428788

= $15,298.84

When Eleanor choose to pay $500 for annual membership fee:

Future Value of annuity due = (1 + r) * P[((1 + r)n - 1) / r]

where P = Periodic payment = $500

i = interest rate = 8.5%

n = no. of compuding period = 15 years

So, FV of annuity due = (1 + .085) * 500[((1 + .085)^15 - 1) / .085]

= (1.085) * 500[(3.3997428788 - 1) / .085]

= (1.085) * 500 * 28.2322691624

= $15,316.01

So, within 15 years lifetime membership is cheaper than annual membership.

You might be interested in
If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic
igor_vitrenko [27]

Answer:

I believe its C

7 0
3 years ago
Indicate how each of the following transactions affects U.S. exports, imports, and net exports.
Oxana [17]

Answer:

 export               import                net export  

1. increases         unchanged         increases

2. unchanged       increases             decreases

3.  unchanged       increases             decreases

4. unchanged       increases             decreases

5. increases         unchanged         increases

Explanation:

export would comprise of goods and services produced in the US that are been sold to foreign countries

Import would comprise of foreign produced goods and services that are been sold in the US

Net export would increase when export occurs and decrease when import occurs

Net export = exports – imports

When the French historian visits the US museum and the European family visits Disney,  they are enjoying US services, thus export increases and net export increases

The purchase of books from Cambridge in UK, Panasonic camera and the visit to Japan constitutes import. These increases import and reduces net export

7 0
3 years ago
In christopher's speech about his hobby as an amateur potter, he exhibited several pieces of pottery as his presentation aids. w
True [87]
I would say that Christopher used a show and tell technique to demonstrate what he has made as that is the most effective way to reveal one's abilities is to see the outcome with one's own eyes and then how it was made makes much more sense than just describing it with only words.
6 0
3 years ago
Average fixed cost
MrRa [10]

Answer:

d. declines continually as output increases.

Explanation:

Fixed costs remain constant throughout a period regardless of output level.  Average fixed costs are obtained by dividing fixed costs by the total output.  Because fixed costs do not change,  average fixed costs will be influenced mostly by the production level.

A large output means that fixed costs will be spread in many units. The result is a reduction in average fixed costs. When the output is large, a firm enjoys economies of scale.  A small output will result in high fixed average costs. A Fixed amount will be shared among a fewer number of units.

3 0
3 years ago
Read 2 more answers
Why do we use a plug key in the circuit?<br>​
madam [21]

Answer:

we use a plug key in the circuit because to avoid from the electric shock ...

6 0
3 years ago
Other questions:
  • The Average Product of Labor is __________.
    14·1 answer
  • On January 1, 2021, Frontier World issues $40.6 million of 8% bonds, due in 15 years, with interest payable semiannually on June
    13·1 answer
  • The northwoods university it department is planning to buy additional computers for the computer lab. pedro bechara, manager of
    14·1 answer
  • Which monarch prepares a speech which is broadcasted on Christmas Day?
    10·1 answer
  • Union Company reported the following information about the production and sale of its only product during the first month of ope
    10·1 answer
  • Raw materials inventory, beginning$1,200 Raw materials inventory, ending1,400 Work in process inventory, beginning7,100 Work in
    14·1 answer
  • International law governs?
    10·1 answer
  • A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year. Management predicts this machine
    13·1 answer
  • "Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, t
    13·1 answer
  • The term economies of scale refers to the fact that as the:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!