jarnold

Okay, we all know that the new iphone price is just a marketing ploy to get people in more expensive contracts. But how much more will it cost you. Assuming a 5% opportunity cost for your cash.

New iphone w/ $69.99 plan: ($1,794.34) =PV(5%/12, 24, 69.99) - 199

Old iphone w/ 59.99 plan: ($1,766.41) =PV(5%/12, 24, 59.99) - 399

The new, $199 iphone costs $27.94 more than the $399 old iphone when you consider the monthly plan and time value of money.