You plan to buy the new iPhone when it is released 6 months from now. You believe it will sell for $999 dollars. You know that you will need to cut back on other expenditures to ensure you have the money ready upon release and decide to start skipping some of your daily Starbucks purchases to afford the new phone. Your usual Starbucks order costs $5. The money you save will earn an interest rate of .5% a month. How many Starbucks coffees each month do you need to sacrifice in order to have saved the $999 for your new phone?

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
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You plan to buy the new iPhone when it is released 6 months from now. You believe it
will sell for $999 dollars. You know that you will need to cut back on other expenditures
to ensure you have the money ready upon release and decide to start skipping some
of your daily Starbucks purchases to afford the new phone. Your usual Starbucks order
costs $5. The money you save will earn an interest rate of .5% a month. How many
Starbucks coffees each month do you need to sacrifice in order to have saved the $999
for your new phone?
Transcribed Image Text:You plan to buy the new iPhone when it is released 6 months from now. You believe it will sell for $999 dollars. You know that you will need to cut back on other expenditures to ensure you have the money ready upon release and decide to start skipping some of your daily Starbucks purchases to afford the new phone. Your usual Starbucks order costs $5. The money you save will earn an interest rate of .5% a month. How many Starbucks coffees each month do you need to sacrifice in order to have saved the $999 for your new phone?
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