It all started with a joke

Our high school math teacher stood at the front of the class with a grin on his face as
he tried to gain the attention of 30 students giddy from gym class.

Hey class, a salesman gets up to take a smoke break and an eager accountant quickly
asks him if he realizes how much money that is costing him.

Salesman: “Yes I do, as a matter of fact. $12 a pack.”

Accountant: “How many packs a day?”

Salesman: “One and a half.”

Accountant: “And how many years have you been smoking?”

Salesman: “Fifteen good ones!”

Accountant: “So one-and-a-half packs a day at $12 a pack puts your spending per
month at $540. Or approximately $6,500 a year, correct?”

Salesman: “Yeah, if you say so.”

Accountant: “So over the past 15 years, you’ve spent $97,500, not accounting for
inflation, correct?”

Salesman: “Right,” he said nervously.

Accountant: “And if you had invested that money monthly, earning 6% interest, you
would now have $155,500. You could’ve bought a Ferrari. But now all that money is up
in smoke!”

Salesman: “Crap, you’re right!” The salesman scratched his head and pondered for a
moment before asking: “Do you smoke?”

Accountant: “No.”

Salesman: “Oh–then where’s your Ferrari?!” The salesman walked passed the slack-jawed
accountant and enjoyed his cigarette.

The room of kids groaned and then laughed. But instead of laughing I was at the back of the
class, desperately wondering where the Ferrari had gone.

GRAEME FALCO, cpa.