How much could you save for retirement if you chose to invest the money you spend on Starbucks coffee in one year? Assume you buy one venti cup of caffe latte for $4.35 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
How much could you save for retirement if you chose to invest the money you spend on Starbucks coffee in one year? Assume you buy one venti cup of caffe latte for $4.35 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years.
![TABLE 12.1
Future value of $1 at compound interest
Perlod
1%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
1.0200
1.07 00
1.0900
1.1000
1
1.0100
1.0150
1.0300
1.0400
1.0500
1.0600
1.0800
1.0201
1.0302
1.0404
1.0609
1.0816
1.1025
1.1236
1.1449
1.1664
1.1881
1.2100
1.0303
1.0457
1.0612
1.0927
1.1249
1.1576
1.1910
1.2250
1.2597
1.2950
1.3310
4
1.0406
1.0614
1.0824
1.1255
1.1699
1.2155
1.2625
1.3108
1.3605
1.4116
1.4641
1.0510
1.0773
1.1041
1.1593
1.2167
1.2763
1.3382
1.4026
1.4693
1.5386
1.6105
1.0615
1.0934
1.1262
1.1941
1.2653
1.3401
1.4185
1.5007
1.5869
1.6771
1.7716
1.0721
1.1098
1.1487
1.2299
1.3159
1.4071
1.5036
1.6058
1.7138
1.8280
1.9487
8.
1.0829
1.1265
1.1717
1.2668
1.3686
1.4775
1.5938
1.7182
1.8509
1.9926
2.1436
9.
1.0937
1.1434
1.1951
1.3048
1.4233
1.5513
1.6895
1.8385
1.9990
2.1719
2.3579
10
1.1046
1.1605
1.2190
1.3439
1.4802
1.6289
1.7908
1.9672
2.1589
2.3674
2.5937
11
1.1157
1.1780
1.2434
1.3842
1.5395
1.7103
1.8983
2.1049
2.3316
2.5804
2.8531
12
1.1268
1.1960
1.2682
1.4258
1.6010
1.7959
2.0122
2.2522
2.5182
2.8127
3.1384
13
1.1381
1.2135
1.2936
1.4685
1.6651
1.8856
2.1329
2.4098
2.7196
3.0658
3.4523
14
1.1495
1.2318
1.3195
1.5126
1.7317
1.9799
2.2609
2.5785
2.9372
3.3417
3.7975
15
1.1610
1.2502
1.3459
1.5580
1.8009
2.0789
2.3966
2.7590
3.1722
3.6425
4.1772
16
1.1726
1.2690
1.3728
1.6047
1.87 30
2.1829
2.5404
2.9522
3.4259
3.9703
4.5950
17
1.1843
1.2880
1.4002
1.6528
1.9479
2.2920
2.6928
3.1588
3.7000
4.3276
5.0545
18
1.1961
1.3073
1.4282
1.7024
2.0258
2.4066
2.8543
3.3799
3.9960
4.7171
5.5599
19
1.2081
1.3270
1.4568
1.7535
2.1068
2.5270
3.0256
3.6165
4.3157
5.1417
6.1159
20
1.2202
1.3469
1.4859
1.8061
2.1911
2.6533
3.2071
3.8697
4.6610
5.6044
6.7275
21
1.2324
1.3671
1.5157
1.8603
2.2788
2.7860
3.3996
4.1406
5.0338
6.1088
7.4002
22
1.2447
1.3876
1.5460
1.9161
2.3699
2.9253
3.6035
4.4304
5.4365
6.6586
8.1403
23
1.2572
1.4084
1.5769
1.9736
2.4647
3.07 15
3.8197
4.7405
5.8715
7.2579
8.9543
24
1.2697
1.4295
1.6084
2.0328
2.5633
3.2251
4.0489
5.0724
6.3412
7.9111
9.8497
25
1.2824
1.4510
1.6406
2.0938
2.6658
3.3864
4.2919
5.4274
6.8485
8.6231
10.8347
26
1.2953
1.4727
1.6734
2.1566
2.7725
3.5557
4.5494
5.8074
7.3964
9.3992
11.9182
27
1.3082
1.4948
1.7069
2.2213
2.8834
3.7335
4.8223
6.2139
7.9881
10.2451
13.1100
28
1.3213
1.5172
1.7410
2.2879
2.9987
3.9201
5.1117
6.6488
8.6271
11.1672
14.4210
29
1.3345
1.5400
1.7758
2.3566
3.1187
4.1161
5.4184
7.1143
9.3173
12.1722
15.8631
30
1.3478
1.5631
1.8114
2.4273
3.2434
4.3219
5.7435
7.6123
10.0627
13.2677
17.4494
Note: For more detalled tables, see your reference booklet, the Business Math Handbook.
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