| | | | | | | |
. | old postage rate | $0.41 | | | | | |
. | new postage rate | $0.42 | | | | | |
. | increase rate | 2.44% | | | | | |
. | | | | | | | |
. | inflation rate | 2.9% | | | | | |
. | | | | | | | |
. | qty stamps purchased | 500 | | | | | |
. | initial cash outlay | $205.00 | | | | | |
. | savings | $5.00 | | | | | |
. | | | | hypothetical annual yields | | | |
. | | inflation rate basis | increase rate basis | 5% | 8% | 10% | |
. | monthly cost of capital | 0.24% | 0.20% | 0.42% | 0.67% | 0.83% | |
. | monthly carrying cost | $0.50 | $0.42 | $0.85 | $1.37 | $1.71 | |
. | months to neutralize savings | 10.09 | 12.00 | 5.85 | 3.66 | 2.93 | |
. | (assumes no monthly compounding) | | | | | | |