Comment Re:Wouldn't leasing it be a better deal? (Score 1) 215
I know this reply is really late but just in case...
7% is normally the rate I hear too when hearing these kinds of factoids.
I do agree that compound interest is a powerful force but there's something to that 7% (or above) number.
If you do the calculation with something less than 7%, say a guaranteed 4-5%, then you'll get fairly different results that make saving look a little less attractive especially when you consider that $100 a month in context of being a young adult with limited income.
Personally, I plan to save that money for my kids to relieve them of the responsibility (as you mentioned). I'll stipulate that they do the same for their kids.