Question: I drink coffee every weekday (assuming for 20 days each month). One cup of coffee costs $4.3. I buy coffee using my credit card, which

I drink coffee every weekday (assuming for 20 days each month). One cup of coffee costs $4.3. I buy coffee using my credit card, which has a 0.5% monthly interest rate. If I cut off my coffee expense starting from next month to save money, how much money can I save over the next 4 years? (Future value at the end of the 4th year). Round the answer to the nearest integer.

Step by Step Solution

3.40 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the amount of money you can save over the next 4 years by cutting off your coffee expense we need to consider the monthly interest rate o... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!