this post was submitted on 14 Nov 2023
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74
Why does the value of things in dollars not make sense? (lemm.ee)
submitted 10 months ago by [email protected] to c/[email protected]
69 comments fedilink hide all child comments
 

This is difficult to explain. I can't figure out a rule of thumb for spending, the prices of things fluctuate so quickly it's confusing. Here are some examples

  1. A house, prices are out of control, inventory is low, sellers are greedy. I'm feeling not only unable to afford it but finding lack of value in inflated prices

  2. Computer parts. Relatively cheap compared to pandemic but more expensive than before but also much cheaper than 90s/00s, but still could be cheaper

  3. TWS earbuds, completely different ball game from regular earbuds, disposable electronics.

  4. Food. Nights out with drinks now sometimes cost me more than 2 & 3, but seem like just keeping up with inflation

The prices range from 100,000s to 100s, but some are fleeting, some semi permanent, some last a long time. I also spend hours researching prices of parts and waiting for sales, but spending the same amount on social events in an instant

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[–] [email protected] 0 points 10 months ago (2 children)

8% of 300,000 is 24,000.

That is $2000/month.

It is basic arithmetic.

[–] [email protected] 1 points 10 months ago* (last edited 10 months ago) (1 children)

Sure, if you ignore all kinds of other factors like additional closing costs added to your mortgage, as well as stuff like insurance and property taxes and the interest on the loan itself. But yeah, simple arithmetic....

I wish it was as easy as just a percentage of the mortgage every month

[–] [email protected] 1 points 10 months ago* (last edited 10 months ago) (1 children)

The offset to the basic arithmetic is negligible.

In my case, a $300k home would yield a $2k/mo mortgage

Source: I'm fucking buying a house.

Jfc y'all

It is basic arithmetic.

[–] [email protected] 1 points 10 months ago (1 children)

That’s not at all how interest is calculated on amortized loans

[–] [email protected] 1 points 10 months ago (1 children)

Yes it is.

There are a few factors that modulate this, very slightly

0 down on 300k at 8% yields a 2025/mo mortgage.

It is basic arithmetic.

[–] [email protected] 0 points 10 months ago* (last edited 10 months ago) (1 children)

No, it’s not.

You’re rationale that 8% of 300,000 = 24,000 therefore $2,000/mo., by dumb luck, comes close at 8%.

  • 12% of 300,00 = 36,000/12 = 3,000; actual is $3085/mo
  • 8% of 300,000 = 24,000/12 = 2,000; actual is $2200/mo (not $2025)
  • 4% of 300,000 = 12,000/12= 1,000; actual is $1432/mo
  • 2% of 300,000 = 6,000/12 = 500; actual is $1108/mo
  • 0% of 300,000 = 0/12 = 0; actual is $833/mo

It’s algebra, not arithmetic.

P = (r * A) / (1 - (1 + r)^(-n))

where:

  • P is the monthly payment
  • A is the loan amount
  • r is the monthly interest rate (APR/12)
  • n is the total number of payments
[–] [email protected] 1 points 10 months ago* (last edited 10 months ago) (1 children)

Do you live in some world where PEMDAS/order of operations isn't basic arithmetic?!

Jfc..

Even we Americans are taught this shit by age 12.

Seriously.

PS., it is $2025. Source: qualified. Decided to wait until $2025/Mo gets me something worthwhile. Your basic arithmetic failed to include the handful of factors that mitigate these numbers slightly zip code/taxes, hoa fees, etc. still, basic fucking arithmetic.

Stay in school.

[–] [email protected] 0 points 10 months ago* (last edited 10 months ago) (1 children)

Not sure how zip code factors into “simple arithmetic” but you do you.

[–] [email protected] 1 points 10 months ago (1 children)

ok

[–] [email protected] 0 points 10 months ago (1 children)

Interest deduction… meaning not 8% anymore. It doesn’t change the math, it changes the rate.

[–] [email protected] 1 points 10 months ago* (last edited 10 months ago) (1 children)

I didn't say it changes the arithmetic, numb nuts. I said it can modulate the price slightly.

Jesus stfu already. Nothing worse than an internet sea lion who can't admit when they're wrong.

[–] [email protected] 0 points 10 months ago (1 children)

Project much?

[–] [email protected] 1 points 10 months ago

Aaaand you're blocked.