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Exercise 5_no13 (FV annuity): Michael is considering his consumption habits, trying to figure out how to save money. He realizes he could save $10 every
Exercise 5_no13 (FV annuity): Michael is considering his consumption habits, trying to figure out how to save money. He realizes he could save $10 every week by ordering regular coffee instead of a latte at the local coffee shop. Since he buys a cup of coffee every workday (5 days a week), every week (52 weeks a year), this works out to be quite a sum. a.) Michael is 25 today and will retire at age 65. By his retirement, how much money will he have accumulated from savings on coffee versus latte? Assume the weekly interest rate is 0.1% and that the savings occur at the end of each week. b.) Michael was astounded at the answer to Part a of this problem. He realized he had more wasteful habits, and he made a list of possible savings to see how much richer he could be at age 65. What are the rewards for Michael's frugality
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