RE: October BNL, 5 for 4 Proposal -Reply

• Subject: RE: October BNL, 5 for 4 Proposal -Reply
• From: Joe Bulterman <jbulterman at earthlink_net>
• Date: Thu, 21 Oct 1999 23:03:23 -0400

```This is the model I used (it's in RTF Format):
Have fun!

Payment	End of	End of	End of	End of	End of		Minus	Interest &
Year 1	Year 2	Year 3	Year 4	Year 5	Total	Principal	Principle
year 1	 \$  24.00 	 \$  25.44 	 \$  26.97 	 \$  28.58 	 \$  30.30 	 \$  32.12
\$143.41 	   (96.00)	     47.41
year 2	 \$  24.00 		 \$  25.44 	 \$  26.97 	 \$  28.58 	 \$  30.30 	 \$111.29
(72.00)	     39.29
year 3	 \$  24.00 			 \$  25.44 	 \$  26.97 	 \$  28.58 	 \$  80.99 	   (48.00)
32.99
year 4	 \$  24.00 				 \$  25.44 	 \$  26.97 	 \$  52.41 	   (24.00)	     28.41
year 5	 \$  24.00 					 \$  25.44 	 \$  25.44 	         -   	     25.44
\$120.00 						 \$413.54 		   173.54

year 1	 \$  96.00 	 \$101.76 	 \$107.87 	 \$114.34 	 \$121.20 	 \$128.47
\$573.63 	 (384.00)	 \$ 189.63
\$ (96.00)	 \$ (96.00)	 \$ (96.00)	 \$ (96.00)
\$101.76 	 \$  11.87 	 \$  18.34 	 \$  25.20 	 \$  32.47 	 \$189.63 		 \$
16.10

NOTE:	This spreadsheet assumes a 6% rate of return on either \$24 or \$96

and the money is deposited at the beginning.
The negative numbers adjust the yearly amount for unpaid principle;
in
other words, the \$96 is paid only once and the \$24 is paid at the
beginning
of each year only.
If you want to view the formulas, simultaneously press ctrl and tilde
and

Joe Bulterman, AKA Membership Committee
14939 Ashford Court
Laurel, MD  20707
301.725.5134 (H)
301.467.5913 (W)
http://www.pvas.com/cakc

-----Original Message-----
From:	William Vannerson [SMTP:William_Vannerson at ama-assn_org]
Sent:	Thursday, October 21, 1999 10:17 PM
To:	killietalk at aka_org
Subject:	October BNL, 5 for 4 Proposal -Reply

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

```