13/09/2024
Let's talk about payment plans.
For a car: After 18 months of payments, you've got a paid-off car that you bought for ₦35m that ended up costing you ₦45m (thanks to interest), but is now only worth ₦20m (thanks to depreciation).
For an apartment: After 18 months of payments, you've got a paid-off 2 bedroom apartment that you bought for ₦35m, that ended up costing you ₦45m (thanks to interest), but is now worth ₦60m (thanks to appreciate).
Payment plans are great but always coincide the time value of money, will it be worth more or less of the purchase price I will eventually pay.
