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Michael is revising his consumption habits to save for retirement. He can save $2 every day by ordering regular coffee instead of latte at the
- Michael is revising his consumption habits to save for retirement. He can save $2 every day by ordering regular coffee instead of latte at the local coffee shop. He buys a cup of coffee 5 days a week for 52 weeks.
- If Michael is 30 today and retires at age 65, how much money will he accumulate from saving on coffee vs latte? Assume the annual interest rate is 4%, compounded weekly.
- Michael identifies two more expensive habits. Every week, he can save an additional $10 by reducing candy consumption, and an additional $30 by eating a home instead of fast food. How much richer will Michael be at age 65 if he implements a. and b. jointly, assuming a 4% annual interest rate, compounded weekly.
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