When buying building what is the inflation like for exanple the 2% or the 5% ect
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Formidableposted
over 12 years ago
It's the rate at which the price grows for each buy.
For example, if a business would cost 1 million and has a 10% inflation rate, the next time you buy it, it will cost 1.1 million. This is calculated per business bought, i.e buying 9 businesses with 10% inflation at 1 mil will up the next time buy price by 9 * (10% * 1 million) = 9 * 100k = 900k. The next time you buy the business, it will cost you 1.9 million a piece. You would, however, lose more if you bought the business 1 at a time, since then, the price calculation would occur more often, resulting in a higher total cost for you. (Buying 9 businesses of the same as above, but 1 at a time, would cost a total of 12.6 million, as opposed to buying all 9 at the same time, which will cost you 9 million.)
The 10% is always of the original price. (The third time you buy the same property, it will cost you 1.2 million, not 1.21 million.
When buying building what is the inflation like for exanple the 2% or the 5% ect
0 Votes
1 Comments
Formidable posted over 12 years ago
It's the rate at which the price grows for each buy.
For example, if a business would cost 1 million and has a 10% inflation rate, the next time you buy it, it will cost 1.1 million. This is calculated per business bought, i.e buying 9 businesses with 10% inflation at 1 mil will up the next time buy price by 9 * (10% * 1 million) = 9 * 100k = 900k. The next time you buy the business, it will cost you 1.9 million a piece. You would, however, lose more if you bought the business 1 at a time, since then, the price calculation would occur more often, resulting in a higher total cost for you. (Buying 9 businesses of the same as above, but 1 at a time, would cost a total of 12.6 million, as opposed to buying all 9 at the same time, which will cost you 9 million.)
The 10% is always of the original price. (The third time you buy the same property, it will cost you 1.2 million, not 1.21 million.
//Formidable - DeathWish MGS1 Votes
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