Your Subscription to Investing Wisely Weekly Is About to Expire

question 60

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 $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:

Unconscious

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions, a fundamental concept in psychoanalytic theory.

Subconscious

Part of the mind that operates below the level of conscious awareness, storing memories, desires, and experiences that influence conscious thought and behavior indirectly.

Id

The Id is a concept in psychoanalytic theory referring to the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Ego

Part of Sigmund Freud's model of the psyche, the ego represents the realistic part that mediates between the desires of the id, the demands of the environment, and the moral standards of the superego.