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 $4.15 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.) Note: Round your answer to two decimal places.
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 $4.15 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.) Note: Round your answer to two decimal places.
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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Transcribed Image Text: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 $4.15 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.)
Note: Round your answer to two decimal places.
Transcribed Image Text:3%
4%
5%
6%
7%
8%
9%
10%
Period ½% 1% 1½% 2%
1.0050 1.0100 1.0150 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700
1
1.0800
1.0900 1.1000
2
1.0100 1.0201
1.0302
1.1664
1.1881 1.2100
3
1.0151
1.0303
1.0457
1.2597 1.2950
1.3310
4
1.0202
1.0406
1.0404 1.0609 1.0816 1.1025 1.1236 1.1449
1.0612 1.0927 1.1249 1.1576 1.1910 1.2250
1.0614 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108
1.0773 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693
1.1941
1.3605
1.4116
1.4641
5
1.0253
1.5386
1.6105
6
1.0510
1.0304 1.0615 1.0934 1.1262
1.1487
1.2653
1.3401 1.4185 1.5007 1.5869
1.6771
1.7716
1.0721 1.1098
1.2299
1.3159
1.5036 1.6058
1.7138 1.8280
1.9487
1.1717 1.2668
1.3686
1.4071
1.4775 1.5938 1.7182
1.5513 1.6895 1.8385
1.9926 2.1436
1.8509
1.9990
1.0459
2.1719 2.3579
1.0355
1.0407 1.0829 1.1265
1.0937 1.1434
1.1046 1.1605 1.2190
1.1157
1.0617 1.1268 1.1960
1.1951 1.3048 1.4233
1.3439 1.4802
1.0511
2.1589
2.3674
2.5937
1.0564
1.5395
2.5804
2.8531
1.1780 1.2434 1.3842
1.2682
1.6289 1.7908 1.9672
1.7103 1.8983 2.1049 2.3316
1.7959 2.0122 2.2522 2.5182
1.8856 2.1329 2.4098 2.7196
1.4258
1.6010
2.8127
3.1384
1.0670 1.1381
1.2135
1.2936
1.4685 1.6651
3.0658
3.4523
1.0723 1.1495
1.2318
1.3195
1.5126
1.7317
2.9372 3.3417
3.7975
1.0777 1.1610 1.2502
1.3459
1.5580
1.8009
4.1772
1.9799 2.2609 2.5785
2.0789 2.3966 2.7590 3.1722
3.4259
3.7000 4.3276
1.0831 1.1726
1.2690 1.3728
1.6047
1.8730
3.6425
3.9703 4.5950
5.0545
5.5599
1.0885
1.4002
1.6528
1.9479
1.0939
1.1843 1.2880
1.1961 1.3073 1.4282
1.4568
1.7024 2.0258
1.0994 1.2081 1.3270
6.1159
1.7535 2.1068
1.8061
1.1049 1.2202
1.3469
1.4859
2.1829 2.5404 2.9522
2.2920 2.6928 3.1588
2.4066 2.8543 3.3799 3.9960 4.7171
2.5270 3.0256 3.6165 4.3157 5.1417
2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275
1.1104 1.2324 1.3671 1.5157 1.8603 2.2788 2.7860 3.3996 4.1406 5.0338 6.1088 7.4002
1.1160 1.2447 1.3876 1.546 1.9161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 8.1403
1.1216 1.2572 1.4084 1.5769 1.9736 2.4647 3.0715 3.8197 4.7405 5.8715 7.2579 8.9543
1.1272 1.2697 1.4295 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.9111 9.8497
1.1328 1.2824 1.4510 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347
1.1385 1.2953 1.4727 1.6734 2.1566 2.7725 3.5557 4.5494 5.8074 7.3964 9.3992 11.9182
1.1442 1.3082 1.4948
2.8834 3.7335 4.8223 6.2139 7.9881 10.2451 13.1100
1.1499 1.3213 1.5172 1.7410 2.2879 2.9987 3.9201 5.1117 6.6488 8.6271 11.1672 14.4210
1.1556 1.3345 1.5400 1.7758 2.3566 3.1187 4.1161 5.4184 7.1143 9.3173 12.1722 15.8631
1.5631 1.8114 2.4273 3.2434
1.7069 2.2213
1.1614 1.3478
4.3219 5.7435 7.6123 10.0627 13.2677
17.4494
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