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 $4.65 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years. (Use the Table 12.1 provided.) (Round your answer to two decimal places.) Amount saved for retirement
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 $4.65 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years. (Use the Table 12.1 provided.) (Round your answer to two decimal places.) Amount saved for retirement
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:TABLE
12.1
Future value of $1 at compound interest
Perlod
1%
14%
2%
3%
4%
5%
6%
7%
8%
9%
10%
1.0100
10150
1.0200
1.0300
1.0400
1.0500
1.0600
1.0700
1.0800
1.0900
1.1000
2,
1.0201
1.0302
1.0404
1.0609
1.0816
1.1025
1.1236
1.1449
1.1664
1.1881
1.2100
3.
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
5.
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
7.
1.0721
1.1098
1.1487
1.2299
1.3159
1.4071
1.5036
1.6058
1.7138
1.8280
1.9487
1.0829
1.1265
1.1717
1.2668
1.3686
1.4775
1.5938
1.7182
1.8509
1.9926
21436
6.
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
21589
2.3674
25937
11
1.1157
1.1780
1.2434
1.3842
1.5395
1.7103
1.8983
2.1049
23316
25804
28531
12
1.1268
1.1960
1.2682
1.4258
1.6010
1.7959
2.0122
2.2522
2.5182
28127
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
29372
3.3417
3.7975
1.1610
1.2502
1.3459
1.5580
1.8009
2.0789
2.3966
2.7590
3.1722
3.6425
4.1772
15
1.1726
1.2690
1.3728
1.6047
1.8730
2.1829
2.5404
2.9522
3.4259
3.9703
4.5950
16
1.4002
1.6528
1.9479
2.2920
2.6928
3.1588
3.7000
4.3276
5.0545
17
1.1843
1.2880
1.4282
1.7024
2.0258
2.4066
2.8543
3.3799
3.9960
4.7171
5.5599
18
1.1961
1.3073
1.2081
1.3270
1.4568
1.7535
2.1068
2.5270
3.0256
3.6165
4.3157
5.1417
6.1159
19
2.1911
2.6533
3.2071
3.8697
4.6610
5.6044
6.7275
20
1.2202
1.3469
1.4859
1.5157
1.8603
2.2788
2.7860
3.3996
4.1406
5.0338
6.1088
7.4002
21
1.2324
1.3671
2.9253
3.6035
4.4304
5.4365
6.6586
8.1403
22
1.2447
1.3876
1.5460
1.9161
2.3699
3.0715
3.8197
4.7405
5.8715
7.2579
8.9543
23
1.2572
1.4084
1.5769
19736
2.4647
3.2251
5.0724
6.3412
7.9111
9.8497
24
1.2697
1,4295
1.6084
2.0328
2.5633
4.0489
4.2919
5.4274
6.8485
8.6231
10.8347
25
1.2824
1.4510
1.6406
2.0938
2.6658
3.3864
4.5494
5.8074
7.3964
9.3992
11.9182
26
1.2953
1.4727
1.6734
2.1566
2.7725
3.5557
7.9881
10.2451
13.1100
1.4948
1.7069
2.2213
2.8834
3.7335
4.8223
6.2139
27
1.3082
8.627 1
11.1672
14.4210
1.7410
2.2879
2.9987
3.9201
5.1117
6.6488
28
1.3213
1.5172
9.3173
12.1722
15.8631
1.5400
1.7758
2.3566
3.1187
4.1161
5.4184
7.1143
29
1.3345
13.2677
17.4494
2.4273
3.2434
4.3219
5.7435
7.6123
10.0627
1:3478
15631
1.8114
Transcribed Image Text:https%253A%252F%252Fbláčkbóard.waketech.edu%252Fwebapps%252Fportal%252Fframese
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 $4.65 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5%
compounded annually for 30 years. (Use the Table 12.1 provided.) (Round your answer to two decimal places.)
Amount saved for retirement
er
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