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If you subscribe to a service that is £100 a year for a 5 year term, and you also get £50 sign up discount and one year free, which of the following do you pay?

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I would say £350. When you get the first year free, that generally means you get 5 years for the price of 4. A £50 discount is basically an account credit, so you would pay £50 less than the 4 years of fees:
> 4(100) - 50 = 350

Your yearly payments for each of the 5 years would most likely be:
> 0, 50, 100, 100, 100
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Well, are you actually getting a £50 sign up discount or are you getting a £10/year sign up discount?

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