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15
Feb



the cost of opportunity

let’s say that you like a BMW car worth int 45 lakhs and go for financing , so the total comes to 50 lakhs INR for a period of 10 years
let’s say you invest this 50 lakhs inr in an instrument that pays you a rate of 10 % per annum for 10 years
you can then see how much 50 lakhs will be in 10 years using one of the calculators : like this

enter the parameters as shown above and this is the result

this is 1 crore 35 lakhs inr
and the value of the car at the end of 10 years is probably 25 lakhs inr
so effectively you lost 1.1 crore inr to drive that bmw for 10 years
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