Question
$1.00 Relationship Between Real and Actual Dollars
- From Engineering: General-Engineering
- Closed, but you can still post tutorials
- Due on Jul. 20, 2010
- Asked on Jul. 20, 2010 at 12:19:27AM
Q:
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?