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Money · Guided lesson

Compare recurring and one-time prices on the same horizon

About 8 minutes · 3 reading + 5 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

An original financial decision-case comparison and rule test covering anchored prices, sunk costs, recurring charges and delayed spending with a prewritten decision rule.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A controlled price-anchor comparison and choice explanation.
  • A sunk/avoidable cost decision table.
  • A twelve-month price comparison and crossover calculation.
  • A dated value-comparison record and access-constraint note.
  • A framed-choice comparison with explicit design limitations.
  • A complete financial decision-case comparison and rule-retest log.

Review and revise

Use these criteria to check your work and choose what to improve.

  • All supplied records reconcile and the decision uses the named case rules.
  • Calculations show units, intermediate values and a second check.
  • Changed-input practice revises the affected result and identifies uncertainty.
  • The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
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Before you begin

The idea in everyday life

This is an original fictional practice case. No account, payment, personal record or outside participation is required. Same fictional offline practice tool access for 12 months: subscription $8/month; one-time version $72, no additional fees. Ignore upgrade differences, tax and resale.

The idea

A small recurring charge can exceed a larger one-time price; compare a complete specified period and equivalent access.

Follow along

Compare recurring and one-time prices on the same horizon — worked practice

A small recurring charge can exceed a larger one-time price; compare a complete specified period and equivalent access.

Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Same fictional offline practice tool access for 12 months: subscription $8/month; one-time version $72, no additional fees. Ignore upgrade differences, tax and resale.

Common-horizon tool pricing

Paste at A1.

AOptionBMonthly USDCOne-time USDDComparison months
Subscription8012
One-time version07212

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  1. 1. Step 1: Fix the comparison horizon at twelve months

    Fix the comparison horizon at twelve months.

    You should see: Both must provide the same required access during that horizon.

    A small recurring charge can exceed a larger one-time price; compare a complete specified period and equivalent access.

  2. 2. Step 2: Compute subscription cost

    Compute subscription cost.

    You should see: 12×8=$96.

    Keep this intermediate result so the final decision can be checked.

  3. 3. Step 3: Compare one-time cost

    Compare one-time cost.

    You should see: $72; subscription costs $24 more.

    Keep this intermediate result so the final decision can be checked.

  4. 4. Step 4: Calculate simple recurring-price crossover

    Calculate simple recurring-price crossover.

    You should see: 72/8=9 months; at month 9 costs are equal under supplied terms.

    Keep this intermediate result so the final decision can be checked.

Now change one thing

Subscription rises to $9/month. Twelve-month difference over $72?

Your work

What to finish

A twelve-month price comparison and crossover calculation.

Common mistake

Watch for this

Comparing one monthly charge directly with a full one-time price.

How can I tell I understand it?

Compare equivalent recurring and one-time charges over a fixed horizon on the supplied changed case while preserving the stated rule and checking the final record.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1$6 monthly versus $60 one-time for twelve equivalent months: recurring extra cost?
2A one-time option lacks a required feature. What follows?
3Canceling halfway through might stop future charges. What must be checked?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
3
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

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Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

Federal Reserve Bank of St. Louis — The Anchoring Effect
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

Federal Reserve Education — Behave Yourself! Behavioral Economics for Kids
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Official resource page and its readable overview/transcript inspected; no external LMS lesson or media playback is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

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