Question

$1.00 Relationship Between Real and Actual Dollars

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christal_wilson
christal_wilson
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8-24             

 

The cost of first-class postage has risen by about 5% per year over the past 30 years.  The US Postal Service introduced a one-time forever stamp in 2008 that cost 41 cents for first-class postage (one ounce or less), and will be valid as first-class postage regardless of all future price increase.  Lets say you decided to purchase 1,000 of these stamps for this one-time special rate.  Assume 5% inflation and our personal MARR is 10% per year (im).  Did you make a sound economical decision?