Lloyd is a divorce attormey who practices law in Florida. He wants to join the American Divorce Lawyers Associlation (ADLA), a professional organization attorneys must be paid at the beginning of each year. For instance, membership dues for dues for the second year are buy a lifetime membership today for $7,000 and never have to pay annual membership dues tion for divorce attorneys. The membership dues for the ADLA are S75。po year the first year are paid today, and payable one year from today. However, the ADLA also has an option for members to lfetime 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 LUoyd 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.)
a. 17 years
b. 18 years
c. 20 years
d. 15 years