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Question - Present value Application: Is it possible to retire on income we invest by foregoing a daily cup of gourmet coffee? At a price of $4.25 per cup, the cup-a-day Starbucks latte drinker is spending $1551.25 per year on this frothy beverage.

Assume that this 18 year old person gave up drinking lattes for one year and invested the proceeds at the prevailing interest rate of 4.25%. What would that investment be worth in 49 years?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93118530

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