Question

3 drinking from the water fountain instead of spending a dollar every day on a soda can result in a $200 asset for beneficial purposes.
true
false

Explanation:

Calculate annual savings from soda

Using the Personal Finance Basics and Budgeting Decisions knowledge points

$$ \text{Daily Savings} = \$1.00 $$

$$ \text{Annual Savings} = \$1.00 \times 365 = \$365.00 $$

Compare savings to the target asset value

Using the Personal Finance Basics knowledge point

$$ \$365.00 > \$200.00 $$

Since saving \$1.00 per day yields \$365.00 in a year, it can easily result in a \$200.00 asset.

Answer:

• True (Correct answer)
• False