My Various Random Ramblings

I was wondering how beneficial the new monthly option for Disney APs is, so I did an analysis.

Present value of normal year pass: $392.99
Present value of monthly pass with MARR of 1%:
A = Monthly Payment, n = 11, i = .01
Present Value = Initial payment + A[(1+i)^n -1]/i(1+i)^n
$84.14 + $266.86 = $351
Internal Rate of Return:
1.42% (Borrowing opportunity)

So if you can get 1% interest on your money somewhere, you save $40 by going monthly. With my bank, I can get roughly that on a CD. So take the same money you would have spent on an AP now and put it somewhere interest bearing and you will come out ahead.

What has Georgia Tech done to me…