Sunday, September 07, 2008

A Haunting Tale of Opportunity Cost

I just remembered that in the year 1999, I bought the album Backstreet's Back for the sum of Rs. 125. Rs. 125, at the rate of 3.5% annually (which is what I might have earned if I left the money in my savings account) would have worked out to Rs. 170.36 today. At the current exchange rate, that works out to about $4. Which is the price of a gyro on pita at Sammy's Halal food stall.

Thats right. My foolish decision to purchase that execrable album has left me poorer by one gyro on pita today.




Blogger Abhishek said...

We do problems where we calculate Net Present Value and curse that no humans care/think about anything that is more that 5 years apart. Obviously we are wrong. Thank you for the perspective!

3:39 AM  
Blogger Arnold said...

I believe you have quite clearly forgotten the night at Kiva--not many moons ago--when the famous "Things you may do, but certainly not speak about having done" line was both uttered and unanimously agreed to.


6:16 AM  
Blogger Kunal said...

Abhishek: Clearly, I am not Homo Economicus.

Arnold: I had forgotten. Damn all.

12:37 PM  
Blogger Shriniwas Kulkarni said...

Were they original?
Were they the only ones?
Were they ...

The dreaded 9th Standard quandary of pocket money management comes back to haunt us all!

3:09 PM  

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