Inflation!
Condition:- You bought a house today for 20 lakh,10 years from now if you sell the house you get 40 Lakh. Premise:- A box of thing which you could have bought today for 20 lakh, 10 years from now you will buy the same box for 50 lakh. The question:- Did you make a profit in selling the house? The condition and the premise are interrelated and in order to answer the question you have to relate both of them If you understand this question and can get the right answer you will understand the meaning of inflation which is a world wide situation now. One can make the right decision while investing money on assets or just simple buying and selling things in day-to-day life. Answer:- You made a loss in selling your house. Why? you ask; It is because of inflation.In layman's terms purchasing power of money is called inflation.The value of money has gone down and so purchasing power has also gone down. What you could have bought for 20 lakh 10 years ago you can buy i...