Question: 47
(Choose 1 answer)
Your subscription to BusinessWeek is about to expire. You plan to subscribe to the magazine for the rest of your
life. You can renew it by paying $50 annually. beginning immediately, or you can get a lifetime subscription for
$500, also payable immediately. Assuming that you can earn 6.525 percent 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. 12
B. 15
C. 10
D. 18
