Current and future subscription rates

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Reference no: EM13894660

Your favorite magazine, Fun with Present Value, offers you four different subscription deals for the next four years. It has guaranteed its current and future subscription rates, as shown below. Which will you take, if your rate of discount is 6 percent and you want to get the magazine for four years?

a. A one-year subscription for $24, followed by a one-year renewal each year for $24 each year.

b. A two-year subscription for $45, followed by a two-year renewal for $48.

c. A three-year subscription for $72, followed by a one-year renewal for $24.

d. A four-year subscription for $89.

Reference no: EM13894660

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