A credit card company wants your business. If you accept their offer and use their card, they will deposit % of your monetary transactions into a savings account that will earn a guaranteed % per year. If your annual transactions total an average of $, how much will you have in this savings plan after years?

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2020-09-10T02:55:33+02:00

Answer:

$6,003.05

Explanation:

Calculation for the amount you will have in the saving plan after 10 years

First step is to find the annual amount

Annual amount = $25,000 x 2%

Annual amount= $500

Second step is to find (F/A, 4%, 10) using financial calculator

Hence,

(F/A, 4%, 10)=(12.0061)

Now let calculate how much will you have in the saving plan

Saving plan amount =$500 (F/A, 4%, 10)

Saving plan amount= $500 × (12.0061)

Saving plan amount= $6,003.05

Therefore the amount you will have in the saving plan after 10 years will be $6,003.05

andromache andromache · Answer 2 · 2022-03-24T14:00:48+01:00

The amount that should be in the saving years after 10 years is $6,003.05.

But before this, determining the following calculations:

Annual amount

= Average annual transactions x deposit percentage

= $25,000 x 2%

Annual amount= $500

Now the amount of saving plan is

Saving plan amount

For saving plan we simply multiply the annual amount with the factor so that the actual amount could come

= Annual amount * factor

=$500 (F/A, 4%, 10)

= $500 × (12.0061)

= $6,003.05

Hence, The amount that should be in the saving years after 10 years is $6,003.05.

Learn more about saving here: https://brainly.com/question/15867099?referrer=searchResults