Peste Merge Center N97 : XVID A 78 Exercise 5 79 Michael is considering his consumption habits, trying to figure out how to save money. He realizes that he could save $2 every day by odering regular coffee instead of latte at the local coffee shop 80 Since he buys a cup of coffee every workday, this works out to $10 per week, which amounts to saving of $520 per year. 81 (A) Michaelis 25 today and retires at age 65, how much money will he have accumulated from savings on coffee versus latte? Assume that the annual interest rate is 4% 82 and that the $520 savings occur at the end of each year. 83 (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 84 What are the rewards of Michael's frugality? (A) Hem Weekly savings Yearly savings Future value at age 65 10.00 25.00 10.00 11.00 97 Latte versus regular $ 98 Deli versus brown $ 99 Excess alcohol $ 100 Cigarettes 101 Candy 102 Excess junk food $ 103 Cell phone (chat vs. $ 104 Wasted groceries 5 105 Restaurants.fast for $ 106 Wasted energy:hes $ 107 Movies versus bool $ 108 Expensive cable TV S 109 Wasted gasoline or $ 110 Wasteful spending S 111 Savings TOTAL 5.00 10.00 6.00 7.00 30.00 12.00 10.00 13.00 8.00 10.00 FV (1) PV (1) + Enter Peste Merge Center N97 : XVID A 78 Exercise 5 79 Michael is considering his consumption habits, trying to figure out how to save money. He realizes that he could save $2 every day by odering regular coffee instead of latte at the local coffee shop 80 Since he buys a cup of coffee every workday, this works out to $10 per week, which amounts to saving of $520 per year. 81 (A) Michaelis 25 today and retires at age 65, how much money will he have accumulated from savings on coffee versus latte? Assume that the annual interest rate is 4% 82 and that the $520 savings occur at the end of each year. 83 (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 84 What are the rewards of Michael's frugality? (A) Hem Weekly savings Yearly savings Future value at age 65 10.00 25.00 10.00 11.00 97 Latte versus regular $ 98 Deli versus brown $ 99 Excess alcohol $ 100 Cigarettes 101 Candy 102 Excess junk food $ 103 Cell phone (chat vs. $ 104 Wasted groceries 5 105 Restaurants.fast for $ 106 Wasted energy:hes $ 107 Movies versus bool $ 108 Expensive cable TV S 109 Wasted gasoline or $ 110 Wasteful spending S 111 Savings TOTAL 5.00 10.00 6.00 7.00 30.00 12.00 10.00 13.00 8.00 10.00 FV (1) PV (1) + Enter
