Michael is considering his consumption habits, trying to figure out how to save money. He realizes that he could save $10 every week by ordering regular coffee instead of latte at the local coffee shop. Since he buys a cup of coffee every work day (5 days a week), every week (52 weeks a year), this works out to be quite a sum.

If Michael is 25 today and retires at age 65, how much money will he have accumulated from savings on coffee versus latte? Assume that the weekly interest rate is 0.1% and that the savings occur at the end of each week.

Weekly interest rate Weekly latte savings Years until age 65 Weeks until age 65 Savings at age 65 (future value) 0.10% 10.00 40