Your subscription to Investing 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 $75 annually, beginning immediately, or you can get a lifetime subscription for $770, 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?

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A: Here,

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Q: If the guaran

A: The amount to be paid for the policy can be computed as follows :

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A: We will have to use the concept of time value of money to solve this.

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A: Worth of money changes with passage of time as money has the power to earn interest.To compute…