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You are deciding whether to purchase an annual pass or two, semester parking permits. Annual permits cost $ 4 1 0 . Semester permits cost
You are deciding whether to purchase an annual pass or two, semester parking permits. Annual permits cost $ Semester permits cost $ due on August th and January th Assuming monthly compounding, what is the rate of return for the annual permit?
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margin of error
To find the rate of return we must compare the cost of the annual permit versus semester permits, where:
an annual permit cost, and semester permit cost
To find the rate of return we set the two equal such that:
This means we buy either one annual permit or buy one semester permit, then wait months August to January to buy the second one.
RoRmonthly
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