Question
1.A.) Q 3.25. A tall Starbucks coffee costs $1.85 today. If the bank's quoted interest rate is 6% per annum, compounded daily, and if the
1.A.)Q 3.25.A tall Starbucks coffee costs $1.85 today. If the bank's quoted interest rate is 6% per annum, compounded daily, and if the Starbucks price never changed, what would an endless, inheritable free subscription to one Starbucks coffee per day be worth today?
perpetuity
B.)Q 3.30.A tall Starbucks coffee costs $1.85 today. If the bank's quoted interest rate is 6% per annum and coffee prices increased at a 3% annual rate of inflation, what would an endless, inheritable free subscription to one Starbucks coffee per day be worth today?
perpetuity
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