Randomness (r_ness) wrote,
Randomness
r_ness

  • Mood:

A back-of-the-envelope calculation on an LJ Permanent Account.

LJ permanent accounts are now on sale. I'm thinking aloud: does it make any sense for me?

My paid account costs me $19.95, charged to my credit card annually. A permanent account costs $150.

Assuming I can earn 3% interest on my $150--a rate I can easily get from a money market fund--that $150 grows to $195.72 over 10 years. (Today's average yield for a money market account in Massachusetts is 3.46%, according to bankrate.com.)

Ten years of a paid account works out to be $199.50.

Assuming that LJ doesn't raise its prices, and assuming that I can continue to earn 3% on my money, it will be 2017 before I come out ahead on my permanent account. (Of course, these assumptions may not hold.)

So the question is, will I still be using LJ in 2017? Will LJ even still exist?

Worth thinking about, anyway.

If there's something seriously haywire about my assumptions or my calculations, please let me know; I'm not an accountant, nor do I play one on TV. I'm sure there's someone on my flist who probably knows more about this than I do and can point out where I've screwed up.
Tags: money
Subscribe
  • Post a new comment

    Error

    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.
  • 16 comments