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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

  1. 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.
    1. 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.
    2. 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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