Awake and Elucidate

a second opinion in everything

Category: Finance

how numbers work

  • Humans are Irrational #1

    If the bank offers you a secured amortised loan at 1.7% flat per year for 25 years and the government is giving 4% risk-free return compounded yearly as an investment. Would you take it? You pay about $0.42 in interest per dollar borrowed for the entire 25 years. Whereas after 25 years, every dollar invested…

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