For Beer Lovers

[LizStreithorst]

Critical thinking at its best...- Saving Our Beer!!

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 gets scary !)

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 spending each month at $450.

In one year, it would be approximately $5400 ?correct?

Man:
Correct

Woman:
If in 1 year you spend $5400, not accounting for inflation, the past
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 could have been put in a step-up
interest savings account and after accounting for compound interest for the past 20 years,
you could have now bought a new Ferrari?

Man:
Do you drink beer?

Woman:
No

Man:
Where's your Ferrari?

[Mugwump]

...yup........ .......LOL

[Rjb3]

Good one.

[GraphicGr8s]

The error in the woman's math is you don't have all the money in one shot.

Love this one though.

[Mugwump]

The error in the woman's math is you don't have all the money in one shot.

Love this one though.

""Do you know that if you didn't drink so much beer, that money could have been put in a step-up
interest savings account and after accounting for compound interest for the past 20 years,
you could have now bought a new Ferrari?

[LizStreithorst]

Don't be so hard on the guy, Mug.  Some poeple don't pay attention to all the information given.

[Mugwump]

Don't be so hard on the guy, Mug.  Some poeple don't pay attention to all the information given.

" poeple ".....who dat ??....LOL....

[LizStreithorst]

Sorry, I shouldn't have said that.  It was hitting below the belt.  I'll try not do it again.  Surely it flew over everyone's head. 

[GraphicGr8s]

The error in the woman's math is you don't have all the money in one shot.

Love this one though.

""Do you know that if you didn't drink so much beer, that money could have been put in a step-up
interest savings account and after accounting for compound interest for the past 20 years,
you could have now bought a new Ferrari?

Average interest rate over the last 20 years was about 5% give or take"

http://www.bankrate.com/finance/cd-rates-history-0112.aspx

Given an initial investment of $1 since you can't start it at zero and adding $450/month to the account over 20 years (1994-2014) you will have $184,967.86.

http://www.bankrate.com/calculators/savings/simple-savings-calculator.aspx

A used Ferrari costs $192,000

http://www.motortrend.com/cars/2012/ferrari/california/pricing/

A new Ferrari is a bit more.

http://www.motortrend.com/new_cars/07/ferrari/pricing/

However if the entire amount is put in at the beginning the amount is substantially increased.

$292,965.15

Now THAT buys a nice new Ferrari however one thing most may have failed to notice is this:

Do you know that if you didn't drink so much beer, that money could have been put in a step-up

She says "so much". The figures to get to the car assume that you would drink no beer. Clearly she is not saying that. She is inferring that he drink LESS. If that is in fact true he still won't have the money for the car since all $5400 is not going into the savings account.

[Mugwump]

LOL....ok, fine, it was a joke anyway.....but where do you get 5% interest now days on savings accounts??...it's more like 1%........

......everyone have a nice day, and don't scratch your Ferrari.......

[PaulineMi]

LOL....ok, fine, it was a joke anyway.....but where do you get 5% interest now days on savings accounts??...it's more like 1%........

......everyone have a nice day, and don't scratch your Ferrari.......

Mine is still in a dealers lot somewhere.....

[Mugwump]

LOL....ok, fine, it was a joke anyway.....but where do you get 5% interest now days on savings accounts??...it's more like 1%........

......everyone have a nice day, and don't scratch your Ferrari.......

Mine is still in a dealers lot somewhere.....

I parked mine in the showroom of the last Chicago Auto show....haven't seen it since....?

http://www.mugwump-fish-world.com//index.php?topic=2661.msg22978#msg22978

[PaulineMi]

My jaw still drops when I see very young MSU college students drive up to a Subway for lunch in a Ferrari or Lamborghini .  They are children of very rich foreign parents. Wonder if they saved their beer money?     Beautiful cars I must say.

[GraphicGr8s]

LOL....ok, fine, it was a joke anyway.....but where do you get 5% interest now days on savings accounts??...it's more like 1%........

......everyone have a nice day, and don't scratch your Ferrari.......

Details details. I said over the last 20 years the average interest rate. Right now you're lucky if you can get one tenth of one percent. (OK FTR that is not an accurate rate it is used as an example only)

Average interest rate over the last 20 years was about 5% give or take"

I just can't believe I spent all that time actually researching that crap. For a joke. But you did ask for it Jon.  And Liz missed the details.

[Mugwump]

LOL....ok, fine, it was a joke anyway.....but where do you get 5% interest now days on savings accounts??...it's more like 1%........

......everyone have a nice day, and don't scratch your Ferrari.......

Details details. I said over the last 20 years the average interest rate. Right now you're lucky if you can get one tenth of one percent. (OK FTR that is not an accurate rate it is used as an example only)

Average interest rate over the last 20 years was about 5% give or take"

I just can't believe I spent all that time actually researching that crap. For a joke. But you did ask for it Jon.  And Liz missed the details.

Semantics is a beautiful thing..... .....and yes.....all for a 'joke' that'll need a disclaimer now, ?....LOL