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Think about three things that you spend money on every week, for example a coffee or chocolate or perhaps taking the bus when you could walk; something that you do not necessarily need. Imagine that money you save can be invested at 5% per year compounded weekly. With this information answer the following:
Problem 1: Calculate how much you would save if you decided not to purchase those things for 10 years.
Problem 2: Explain whether you think what you are giving up in savings by making those purchases is worth it or not. For example, if you believe that the joy of eating some chocolate every week is greater than the joy that you would get from having those extra savings after 10 years, then the tradeoff would not be worth it for you
Financial Statement Analysis and Preparation
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