A weekly business magazine offers a 1-year subscription for $24.99 and a 4-year subscription for $85. If you thought you would read the magazine for at least the next 4 years, and consider 18% as a minimum rate of return, which way would you purchase the magazine: With four 1-year subscriptions or a single 4-year subscription?
A weekly business magazine offers a 1-year subscription for $24.99 and a 4-year subscription for $85. If you thought you would read the magazine for at least the next 4 years, and consider 18% as a minimum rate of return, which way would you purchase the magazine: With four 1-year subscriptions or a single 4-year subscription?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A weekly business magazine offers a 1-year subscription for $24.99
and a 4-year subscription for $85. If you thought you would read the
magazine for at least the next 4 years, and consider 18% as a
minimum rate of return , which way would you purchase the
magazine: With four 1-year subscriptions or a single 4-year
subscription?
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