Frank signed up with a new movie service. It costs $644 per year, with a one-time set-up fee of $216 due today. The movie service requires a 3-year contract. If movies typically cost $8.5 per movie, what is the minimum number of movies Frank would need to see in a year to make the service worthwhile? Use an interest rate of 9% to make the calculation.

Note: Frank makes the payments at the end of the year. Frank makes the first payment at the end of year 1 and the last payment at the end of year 3.

Answer rating: 100% (QA)

For 3 years contract Without contract cost of movies Let number ... View the full answer