My point is that it is a good deal for the Club to get 15 years dues in advance (in my example, if annual dues is $10, life memberships would cost $150.) I showed that if the Club could get a low 4% annual interest on its monies, getting $150 now is the exact same thing as being assured of 24 years of $10 payments. If the Club were in a gambling frame of mind, I'm sure it would take a sure thing of 24 years of dues over the chance of any member living and paying dues for more than the next 24 years.

The higher the interest rate, the better the deal for the Club on life memberships. No one would argue with the 15-years-dues-for-life-membership idea if interest rates are 6-2/3% or higher. At 6-2/3% interest, the Club would earn $10 per year for the rest of eternity on $150 annual dues.

(I am not saying peg the life membership at only 15 times annual dues. I am just saying 15-times is not a bad deal for the Club.)

Robert