alleryStart learning →Saving one dollar of daily coffee money, about $365 a year at 5%, grows to roughly what in 30 years?
A$465.84
B$1,577.50
C$3,650.00
D$10,950.00
Answer & Solution
Correct answer: B. $1,577.50
1. A daily $1.00 coffee adds up to $365.00 a year.
2. Saved at 5% a year, it would grow to $465.84 in 5 years.
3. By the end of 30 years it reaches $1,577.50, the power of compounding at work.
4. The larger figures ignore that only one year's $365 was saved in this example.
_Source: "Saving and Investing: A Roadmap to Your Financial Security" (US SEC, public domain), section Investing_
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