ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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You are a coffee connoisseur; you can't remember the last time you went one day
without a warm cup of Joe. In fact, your normal routine (7 days a week, 52 weeks a year) is
to spend $6 for a large, warm beverage. But, this course has you wondering if quitting coffee
would provide a nice way to inflate your retirement fund by age 65. So, at 25 years old, you
decide to save your $6 for each day of the week and deposit it every Friday (this means you
make one $42 deposit each week, 52 weeks per year) into an account. You plan to repeat this
deposit every week for the next 40 years, earning 8% compounded weekly in your coffee
account. How much will you have in 40 years?
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Transcribed Image Text:You are a coffee connoisseur; you can't remember the last time you went one day without a warm cup of Joe. In fact, your normal routine (7 days a week, 52 weeks a year) is to spend $6 for a large, warm beverage. But, this course has you wondering if quitting coffee would provide a nice way to inflate your retirement fund by age 65. So, at 25 years old, you decide to save your $6 for each day of the week and deposit it every Friday (this means you make one $42 deposit each week, 52 weeks per year) into an account. You plan to repeat this deposit every week for the next 40 years, earning 8% compounded weekly in your coffee account. How much will you have in 40 years?
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