Thursday, August 15, 2013

Opportunity cost in life?

Woman:Do you drink beer?
Man: Yes.
Woman: How many beers a day?
Man: Usually about 3.
Woman: How much do you pay per beer?
Man: $5.00 which includes a tip.(This is where it getsscary !)
Woman: And how long have you been drinking?
Man: About 20 years, I suppose.
Woman: So a beer costs $5 and you have 3 beers a day which puts your spendingeach month at $450.  In one year, it would be approximately $5,400…correct?
Man: Correct.
Woman: If in 1 year you spend $5,400, not accounting for inflation, thepast 20 years puts your spending at $108,000, correct?
Man: Correct.
Woman: Do you know that if you didn’t drink so much beer, that money couldhave been put in a step-up interest savings account, and after accountingfor compound interest for the past 20 years, you could have now boughta Ferrari?
Man: Do you drink beer?
Woman: No.
Man: Where’s your Ferrari?

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