Time-travel will be invented in a few decades and your future-self pays you a visit to give you some
advice. You meet outside Starbucks, just as you are about to order your favorite venti white mocha,
quad shot (2 shots on bottom, 2 on top), almond milk, extra hot, caramel drizzle (inside the cup)
with extra whip cream for $8.05.
1. Your future-self begs you not to order the drink, arguing that you can invest the amount in
the S&P500 instead with an annual return of 8% for the next 40 years. If you do so, how
much money will you have in 40 years for every coffee you skip?
2. You skip the coffee for today! Also, your future-self informs you that you will attend two LSU
home football game every year, each of which will cost you about $2,000 and encourages you
to limit your trips to one per year. How much money would you have in 40 years if you attend
only one game per year and invest the savings in the S&P500 with an annual return of 8%?