Question
A bookstore offers you the following deal: you pay $31 today (in January) and you get 5% off the price of everything you purchase in
A bookstore offers you the following deal: you pay $31 today (in January) and you get 5%
off the price of everything you purchase in December (for simplicity assume exactly 12
months from now). If your savings account earns 4.50% APR (compounded monthly), how
much do you have to buy in December to just break even on the offer?
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Applied International Finance
Authors: Thomas J O'Brien
1st Edition
1606497340, 9781606497340
