evnow
Well-known member
ttweed said:T-bills are in the toilet right now. A $20K, 3-year CD is earning around 2% APY right now, and meets your qualification of a "low risk investment." I think a reasonable discount rate for this exercise might be 1/2 of the 5% used above.opencar said:Discount rate of 5% seems high. Current 3yr t-bills are running 0.5%.
TT
One way to do a "low risk investment" would be to pay into your mortgage instead of on the car - so that would be more than 3.5%. Ofcourse your after tax rate would be still lower.