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  3. 4 in a previous homework we learned that skipping your...

Question: 4 in a previous homework we learned that skipping your...

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4. In a previous homework, we learned that skipping your daily Starbucks fix would save you S180 per month. If you invested those savings in a retirement account earning 0.25% per month compound interest, you would have an additional S166,691 saved up by time you retire. Assuming you will live 20 years after retiring, how much additional monthly income will this provide you in your retirement?

66 A concept car that will get 100 miles per gallon and carry four persons would have a carbon-fiber and aluminum composite frame with a 900 cc three-cylinder turbodiesel/electric hybrid power plant. The extra cost of these technologies is esti- mated to be $11,000. (a) If gasoline savings over a comparable conventional car would be $900 in year one, increasing by 10% each year, what is the present worth of the savings over a 10-year period at an interest rate of 8% per year? (b) Compare the present worth values to determine if the extra cost is recovered by fuel savings

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