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 rate would the alternatives be equivalent?

Question

Quizplus · Accepted Answer

The Answer of 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 rate would the alternatives be equivalent?

Jonas Recently Purchased a One-Year Membership at Gold's Gym