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

[Seth David Schoen]

Shannon Lee writes:

> 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%.

The prime rate is 3.25% per year so each of those 1.0325s should be
replaced with 1.0027.

> 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:

Actually 1.00125, since we get 1/12 of 1.5% interest on 12
occasions per year rather than 1.5% interest on 12 occasions.

On this theory members would get relatively little discount for
early payments: their discounted payments would range from
78.81 to 79.90, unless Noisebridge could find a more profitable
way to invest membership dues.

-- 
Seth David Schoen <schoen at loyalty.org> | Qué empresa fácil no pensar en
     http://www.loyalty.org/~schoen/   | un tigre, reflexioné.
     http://vitanuova.loyalty.org/     |            -- Borges, El Zahir