Welcomer Balances are long term, transferrable credits, that are only redeemable with Welcomer services.
Balances are adjusted for inflation. When a balance, or part balance, is used the value of services it can purchase is increased depending on how long the balance has been held. The balance is adjusted by a fixed 20% yearly on the original purchased balance adjusted for inflation.
The balance calculations are:
- the balance of credits is adjusted for inflation
- the balance purchases the balance plus the number of years the balance held times 20%.
All balance calculations are additive.
Example Calculation
Assumptions
- $1000 balance is purchased and in one year’s time $1000 worth of services are purchased.
- Inflation rate is 3%
- Balance time adjustment is 20%
Calculations
- Adjust $1000 for 3% inflation = $1030
- Discount at 20% = $1030*20% = $206
- Total value of goods that can be purchased = $1236
- The $1000 is deducted from $1236 leaving $236
- The balance is drawn down by 1000 leaving $30 that continues to earn a discount plus $206 in discount that is adjusted for inflation.
- In a further one year the balance is ($236+ $30 * 20%)(1+3%) = $244.