PV of an Annuity

1 The number of purchased beverage I consume each day

(1): Amount (p) I spend per day on these beverages

(2) = input from (1) above x p:

If you do not know how much you spend per beverage, use $3.20/beverage

The number of purchased beverage I consume each weekend (3):

Amount I spend each weekend on these beverages (4):

Average annual spending on beverage, in $; this is your C (5) =(2) x250 + (4)x50

Why only 50 weeks and not 52?

Subtract your current age from the time you plan on retiring; this is your t (5), in years :

If you do not know when you plan to retire, please use 68:

Present Value (PV) of a t period annuity (We will see how and why later but lets not get stressed about it, for your class, its less relevant):

Or,

Using the discount rate from TE 1, calculate the PV of your beverage consumption over your productive lifetime, in $: