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October BNL, 5 for 4 Proposal -Reply

To: killietalk at aka_org
Subject: October BNL, 5 for 4 Proposal -Reply
From: "William Vannerson" <William_Vannerson at ama-assn_org>
Date: Thu, 21 Oct 1999 21:16:35 -0500

Okay.

So the correct economic model would be:

$24 available to cover 1st year =  24.00
$24 invested for 3 years @ 6%  =  28.58
$24 invested for 2 years @ 6%  =  26.97
$24 invested for 1 years @ 6%  =  25.44
                                                     ------------
                                                     $105.00

That's $15 dollars short.  The break even point is about $110 for the five yeas.  That represents a member savings of $8.

This does not factor in additional money gained by a lower attrition rate.  Nor does it account for fluctuations in the interest rate, which has been rising slightly of late. But it could easily go down during the time as well.

Food for thought

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