Question: This is a True / False question. Please explain the reason. Question 1: The annual membership fee at your health club is $750 a year

This is a True / False question. Please explain the reason.

Question 1: The annual membership fee at your health club is $750 a year and is expected to increase at 5% per year. A life membership is $7,500 and the discount rate is 12%. In order to justify taking out the life membership, your minimum life expectancy must be 20 years. (8 %)

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