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 May 26th, 2013, 04:42 PM #1 Newbie   Joined: May 2013 Posts: 2 Thanks: 0 Simple Interest 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!
 May 26th, 2013, 07:46 PM #2 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 Re: Simple Interest Hint: interest @ 8.5% for 1 month on 1215 = .085/12 * 1215 = 8.60625, or 8.61 rounded

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