Re: Discount Calculations

Dale E. Reed Jr. ( (no email) )
Tue, 17 Mar 1998 22:25:52 -0800

Robert H. Clugston wrote:
> Dear Dale,
> I noticed that you calculate a semi-annual payment discount by first
> taking out the discount then multipling it by the number of months. For
> some reason it's seems more logical to first multiple the payment by the
> number of months then take out the percentage. For example if I wanted to
> give 6 months for the price of 5:
> 16.67% discount for 6 months = 99.75
> 16.67% discount for 6 months = 99.72 (with emerald)

For some reason? :)

The discount is designed to be taken from the monthly base rate. By
this we mean if you sell an account for 19.95 and offer a 10%
discount for quarterly, then its 10% of 19.95, not 19.95*x.

It could be either way. Thats just the way we chose to do it.

-- Dale E. Reed Jr.  (       IEA Software, Inc.      |  RadiusNT, Emerald, and NT FAQs Internet Solutions for Today  |