Financing Your Vehicle vs. Paying Cash – 3
Continuing from my previous blog….
Both persons have made the very same monthly payment. However, the investor (the one who does not borrow) makes no more payments, but continues to let the accumulation of his or her six-year payments grow in the marketplace, gaining return upon compound return at the very same rate.
In just 4 additional years, the lump sum of payments has now turned into $90,082. Add on another 10 years and it becomes $299,081; yet another 10 years and the total is now $992,985. Finally, after another 10 years it has grown to $3,296,826.
Amazing! All the accumulation has come from just six years of monthly payments. The borrower described in Proverbs 22:7 has a used vehicle of questionable value after six years. But with absolutely no additional contributions, look what the wise person of Proverbs 22:7 has accumulated! This is a clear reminder that the Bible really does make a lot of sense.
Are there any financing horror stories in your past? Your comments appreciated!
Content © Rich Brott, 2011
