Question: Your subscription to Upper Peninsular Wisely Weekly is about to expire. You plan to subscribe to the magazine for the rest of your life, and
Your subscription to Upper Peninsular 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? Hint: Find N for an annuity due with the indicated terms to determine how long you must live to make the lifetime subscription worthwhile. Select one: O 8.86 - 11.15 6.95 09.14 10.60
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