If I purchase a 1-year subscription for $30 when the interest rate is 10 percent, rather than a 2-year subscription for $58, I have made a wise investment.

Question

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Assuming that the interest rate applies to the cost of the subscription, the cost of the 1-year subscription would be worth $33 after one year (the original $30 plus 10% interest), while the cost of the 2-year subscription would be worth $63.80 after two years (the original $58 plus 10% interest for two years). Therefore, choosing the 1-year subscription would result in a lower total cost and would be a wise investment.

If I Purchase a 1-Year Subscription for $30 When the Interest