the cost of opportunity

black and silver bmw emblem

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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