Stores such as Sam's Club and Price-Costco charge an annual membership fee of approximately $40. As a member you can purchase products at lower prices, but typically in larger quantities than one buys at ordinary stores. Savings vary from product to product, but for this question, let us assume you can save $20 for every $100 dollars you spend at one of these stores compared to shopping elsewhere.

a. Suppose you spend $100 dollars in one year at such a store. Do you come out ahead? How much do you save (or lose?) compared to not having membership and paying full price?

How do I begin

Question

Stores such as Sam's Club and Price-Costco charge an annual membership fee of approximately $40.  As a member you can purchase products at lower prices, but typically in larger quantities than one buys at ordinary stores. Savings vary from product to product, but for this question, let us assume you can save $20 for every $100 dollars you spend at one of these stores compared to shopping elsewhere.

a.  Suppose you spend $100 dollars in one year at such a store.  Do you come out ahead? How much do you save (or lose?) compared to not having membership and paying full price?

How do I begin