1) | For the two options to be equal, their PVs should be | |
equal when discounted with 7.4%. | ||
So, 5000 = 600*PVIFA(7.4,n) | ||
where n is the number of years taken for the PV of 600 | ||
to equal $5000. | ||
Solving for n | ||
PVIFAD(7.4,n) = 5000/600 = 8.3333 | ||
Annuity factor for 12 years = (1.074^12-1)*1.074/(0.074*1.074^12) = | 8.3515 | |
Annuity factor for 13 years = (1.074^13-1)*1.074/(0.074*1.074^13) = | 8.7761 | |
As the factor obtained by dividing 5000/600 of 8.3333 is near | ||
to the factor for 12 years, the answer is | 12 Years | |
2) | Value as of 2012 = 24*1.0525^386 = | $ 9,07,70,26,047.17 |
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14. More on the time value of money Aa Aa E 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....
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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 Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, a 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 Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $800 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 attomey who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attomeys. 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...
Sean is a divorce attorney who practices law in Philadelphia. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 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...
7. More on the time value of money 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 $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...
Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 19. More on the time value of money Aa Aa E 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 $550 per year and must be paid at the beginning of each year. For instance, membership dues...