[Noisebridge-discuss] Proposal: Discounted full-year dues

[Shannon Lee]

On Thu, Jun 17, 2010 at 1:45 PM, Seth David Schoen <schoen at loyalty.org>wrote:

> If the accounting is done properly,
>

I believe that this is the key phrase here.

Two points:  one, we don't have the kind of good accounting practices that
would result in this sort of thing working *in this way*; and two, the
perceived benefits (eg, extracting a year's commitment from members upfront
+ borrowing against future dues to cover a present shortfall) are hard to
put numbers on, unless we figure out how much it'd cost us to borrow this
ammount of money, and use that for i, rather than the potential amount of
interest we'd earn over the course of the next year, if we had good
accounting practices.

Prime rate is currently 3.25%, which means (I think) that we're looking at:

(80/(1.0325^12)) + (80/(1.0325^11)) +(80/(1.0325^10)) +(80/(1.0325^9))
+(80/(1.0325^8)) +(80/(1.0325^7)) +(80/(1.0325^6)) +(80/(1.0325^5))
+(80/(1.0325^4)) +(80/(1.0325^3)) +(80/(1.0325^2)) +(80/(1.0325^1)) =

54.50 + 56.27 + 58.10 + 59.99 + 61.94 + 63.95 + 66.03 + 68.18 + 70.39 +
72.68 + 75.04 + 77.48 = 784.57

...which is 81.72% of the regular one-year price of membership (960), a
discount of 18.28%.

Alternately, I think I heard Andy say we make 1.5% on what's in our checking
account, so that would be (80(1.015^12)) + ..., for:

66.91 + 67.91 + 68.93 + 69.97 + 71.02 + 72.08 + 73.16 + 74.26 + 75.37 +
76.51 + 77.65 + 78.82 = 872.60

..which is 90.8% of "regular price," a discount of 9.2%.

Note that these neatly bracket Jason's 11% figure.

-- 
Shannon Lee
(503) 539-3700

"Any sufficiently analyzed magic is indistinguishable from science."
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