Ok, this is a departure from my normal biotech / research stuff, but there’s so much internet-stupidity going on that I want to post something about basic financial math.
Everyone has their panties in a bunch because the iPhone 3G costs less up front but “costs more over the life of the contract!” This is a bunch of crap, and people who believe that are also going to get screwed when they buy a car or a house.
Here’s the thing: you cannot compare 2 financial deals simply by adding up all of the payments and seeing which is bigger, because there is such a thing as the “time value of money.”
Continue reading ‘iPhone 3G costs are unchanged over first gen’