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

[dartpoly.livejournal.com]

i think the 3% interest is a red herring.

i look at it this way, i'm currently paying $20/yr (already paid in March, for me). at $150, it'll be late in 2014 before it starts "paying for itself", and Spring of 2015 before it has any real impact on me. yes, i've been on here for a long time (5 years?), and i'll probably stick around for 8 more, at least...

i suppose if my income was high enough that $150 was "the kind of money you'd tip a waiter", i'd do it.