Subscription to Investing Wisely Weekly Is About to Expire

question 132

Multiple Choice

subscription to Investing Wisely Weekly is about to expire.You plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $85 annually, beginning immediately, or you can get a lifetime subscription for $850, also payable immediately.Assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy?

• A)7.48
• B)8.80
• C)10.35
• D)12.18
• E)14.33

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Definitions:

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The process or strategy aimed at making the highest possible profit within a business, often seen as the primary goal of for-profit entities.

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Pfizer

A global pharmaceutical corporation known for developing and manufacturing a wide range of healthcare products including medicines and vaccines.

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An 18th-century Scottish economist and philosopher, best known for his theories on free market economies and the concept of "the invisible hand."