You bought 500 Forever stamps just before the price went up in January of 2014 at...

You bought 500 Forever stamps just before the price went up in January of 2014 at $0.46/stamp, a $0.03 savings per stamp. If you could have paid off a credit card charging 12% per year instead of investing in stamps, how fast must you use the stamps to breakeven? Assume the $0.49 price never changes before you run out of stamps. (Hint use 12% /year as your effective interest rate per year)

a. 3 months

b. 6 months

c. 10 months

d. 12 months

e. 36 months

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Expert Solution

Colby Messinger answered 1 year ago

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