Your Subscription to Investing Wisely Weekly Is About to Expire

question 116

Multiple Choice

Your 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 $620,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) 6.95
• B) 8.86
• C) 9.14
• D) 11.15
• E) 10.60

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Definitions:

Face-to-face Negotiations

Direct negotiations between parties who are physically present in the same location, allowing for immediate interaction and feedback.

Industrial Relations Department

A division within a company focused on managing relationships and negotiating labor contracts with employees and unions.

Open For Negotiation

A term indicating willingness to discuss and compromise on terms in a discussion or agreement.

Mutual Gains Bargaining

A negotiation strategy where all parties involved aim to find solutions that benefit everyone, rather than competing for fixed resources.