Entry 13 - Surprise 2

For my lifetime expenses, I calculated the amount of money I would spend in 40 years for entertainment, apparel and services, food, and personal care products and services and I found my inflation rate .

Entertainment	Equation	Future Value of Annuity
$3,327	3327*((((1+0.022)^40)-1)/0.022)	$209,904.71

Apparel and Services	Equation	Future Value of Annuity
$1,817	1817*((((1+0.022)^40)-1)/0.022)	$114,636.87

Personal Care Products and Services	Equation	Future Value of Annuity
$606	606*((((1+0.022)^40)-1)/0.022)	$38,233.32

Food	Equation	Future Value of Annuity
$6,462	6462*((((1+0.022)^40)-1)/0.022)	$407,695.89

Assumptions:

For all of my calculations I used the future value of annuity equation and for the present value I used the average amount of money Americans spend on food, personal care products and services, apparel and services, and entertainment from visualeconomics.com. For the interest rate of the equation, I took the average of the inflation rate averages from 1999 to January 2015 provided by usinflationcalculator.com, which turned out to be 2.2%. Then for the amount of time I am accounting for, I used 40 years.