Monday, December 04, 2006
The concept of Utility of money
Came across an interesting concept called utility. Simply put, if you have $20000, and you have the chance of earning a further $800 if you keep the $20000 in a bank (or in any way other than spending it), is the utility of the $800 enough to warrant the loss of spending power incurred?
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2 comments:
I think your blog must be called the A, B and C of life.
Isnt there such a thing called "time value of money". That exactly answers what you are asking.
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