Question

suppose Christian stops for coffee a given number of times per week. use the information in the following table to calculate how much he would save if he deposited the amount he would spend on coffee into an ordinary annuity instead. assume there are 4 weeks in a month.

Answer 1

Numbers of coffee per month: 40

Numbers of coffee per year: 40 x 12 = 480

480 * ($4.05) = $1944

$1944 * 0.036 = $69.98

Annual savings = $1944 + $69.98 = $2013.98

Savings on 13 years = $2013.98 *13 = $26181.79