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.

Damn.

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4 Comments:

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.

Schade!

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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