Your Subscription to Investing Wisely Weekly Is About to Expire

question 141

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 $740,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) 10.48
• B) 10.72
• C) 11.65
• D) 9.32
• E) 11.42

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Definitions:

Plan Conferences

The organization and scheduling of meetings, typically for professional or academic gatherings, to discuss specific topics or areas of interest.

Concrete Operational

A stage in cognitive development where children gain the ability to think logically about concrete events and understand conservation.

Piaget

A Swiss psychologist famous for his theories on cognitive development in children, positing that children move through distinct stages of intellectual growth.

Intrinsic Rewards

Personal satisfaction or enjoyment derived from accomplishing a task or learning new skills, unrelated to external rewards.