Atall starbucks coffee costs $1.65 a day. of the bank’s daily interest rate is 0.01%, compounded daily, and if the starbucks price never changed, what would an endless, inheritable free subscription to one starbucks coffee per day be worth today

This problem requires the equation for perpetuity. Since the problem asks for the present value for an infinite period subscription for one Starbucks coffee, the equation would be PV= A/i wherein A is the price of 1 cup of coffee which is $1.65. The interest rate can be computed by using the equation i= (e^rate)-1. The interest rate computed is 1.0001x10^-4. The present value is $16499.18. 

there are so many examples for that in different areas, like biology experiment carried out in our lab recently.

here's one link :

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