future vakue of wise buying if a perso saves $63 a month by using coupons and doing comparison shopping whai is the amount for a year, what would be the future value of this annual amount over 20 years assuming and interest rate of 4 percent
To calculate the annual amount saved by using coupons and comparison shopping, multiply the monthly savings by 12 (since there are 12 months in a year).
Annual amount saved = $63/month * 12 months = $756/year
To calculate the future value of this annual amount over 20 years with an interest rate of 4%, you can use the formula for compound interest:
Future Value = Present Value * (1 + interest rate)^number of periods
In this case, the present value is $756/year, the interest rate is 4% (0.04), and the number of periods is 20 years.
Future Value = $756 * (1 + 0.04)^20
Calculating this equation gives us the future value of saving $756/year over 20 years with a 4% interest rate.