Determining the rate of return for buying a life membership

Assignment Help Business Economics

Reference no: EM131806408

You have just been elected into the "Society of Honorable Engineers." First-year dues are waived in honor of your election. Thus, your first-payment of $200 is due at the end of the year, and annual dues are expected to increase 3% annually. After 40 years you become a life member and no further dues are owed. Instead of paying annual dues, however, you can pay a one-time $2000 life membership fee.

(a) Show the equation for determining the rate of return for buying a life membership. Contributed by D. P. Loucks, Cornell University

(b) What is the rate of return?

Reference no: EM131806408

Questions Cloud

Problem-lease an rfid tracking system for asphalt : A state's department of transportation (DOT) is considering whether to buy or lease an RFID tracking system for asphalt, concrete, and gravel trucks to be used.

Detail current controversy involving international trade : Does immigration help the labor market or does it hurt the labor market? Explain in detail a current controversy involving international trade.

What is each partner adjusted basis in the partnership : Three individuals form a partnership sharing in profits and losses equally. What is each partner's adjusted basis in the partnership

Design the hinge with the best ratio of weight : Design the hinge with the best ratio of weight on solidworks program - You should design same thing smaller to that and used the same domination

Determining the rate of return for buying a life membership : Show the equation for determining the rate of return for buying a life membership. Contributed by D. P. Loucks, Cornell University

What developmental factors cause these features : What is the relevance of Volkswagen's adoption of IAS to the classifications studied

Determine the liquidity premium for the corporate bond : If a default risk premium of 1.50 percentage points is estimated for the corporate bond, determine the liquidity premium for the corporate bond

Bargaining power of suppliers : Considering Michael Porter’s competitive forces model, explain how IT and the Internet have changed the three forces- bargaining power of suppliers

What rate of return will the man receive : The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years

User Account

All Pages