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randomnessLJ 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.
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.
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Date: 2007-06-21 06:13 pm (UTC)Oh, absolutely. I started out with a significantly higher estimated annual return, but I figured I'd use an exceptionally conservative yield estimate. (Safer to have you saying "You can do a lot better than that!" instead of someone else saying, "That's an absurdly high yield! Unfair!", because your comment strengthens my argument.)