Jonas recently purchased a one-year membership at Gold's gym. He can add a second year to the membership now for $1215, or wait 11 months and pay the regular single year price of $1280. Which is the better economic alternative if money is worth 8.5%? At what discount rate would the alternatives be equivalent?
I appreciate any help I can get on this one. Thanks!
I appreciate any help I can get on this one. Thanks!