# You are considering purchasing a membership to a store that offers bulk discounts to its members. If you expected to save…

You are considering purchasing a membership to a store that offers bulk discounts to its members. If you expected to save $50 a year (indefinitely) and the market rate was 12%, at what price would you be indifferent to the membership? What if the membership cost $200, how much would you need so save each year to make it worth it?