I was looking to understand synergies because I'm reading a random walk down wall Street and I found your videos... I'm so glad I did keep it up you're amazing!
@nicolasdorier8190Ай бұрын
Weird, I found a nominal of 1,377$ as Annual Saving. I used a different approach using nominal amounts... Due to inflation, the car cost 15,918$, and savings will be 11,576$, thus need to pay 4,342$ in 3 years. Then I use FVIFA=4,342$, K=5% (assuming I reinvest savings as I get them) which give me 1,377$ saving needed per month. Which to me mean that every year, I will need 1,377$ saved from my paycheck. EDIT: Ok so this is 1,377$ nominal. Which is indeed equivalent to 1,325$ constant. You come back to 1,325$ by discounting inflation on 4,342$, then you end up with 4,092$ as in the video. The 1,325$ of the video is very confusing, because this is in constant dollar term. An annuity is generally talked in nominal term...