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

[randomness]

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.

Comments

[bookly.livejournal.com]

It looks like they're still donating to one of four charities. They're not charities I'd donate to ordinarily (since I hadn't heard of most of them!), but since it's an option, that would probably factor into my decision.

[bookly.livejournal.com]

(Especially since I now have soft spots--for separate reasons, that I think you're familiar with :)--for organizations working to prevent violence against women and to promote human rights. I'm less keen on the other two, but have no objections to them.)

[r-ness.livejournal.com]

Now that you know about the charities, though, you could easily simply donate to them and cut out the middleman. If you itemize deductions you could even save on your taxes doing it that way.

[bookly.livejournal.com]

True, but then I wouldn't have a permanent LJ account for $125. :)

[r-ness.livejournal.com]

If you think you'll get $125 of use out of it, perhaps it's a reasonable idea.

I'm just not sure I will.