A one-year subscription costs 75 a three-year subscription


A one-year subscription costs $75; a three-year subscription costs $200; and a five-year subscription costs $330. Subscriptions payments are due at the beginning of the subscription. The nominal rate of interest is 7.12% and inflation is expected to be 3.0%. Assume that you are a ”long-term subscriber” (i.e., you will be subscribing to the Wall Street Journal forever). Which subscription period is the best?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A one-year subscription costs 75 a three-year subscription
Reference No:- TGS01213148

Expected delivery within 24 Hours