Question: Assume Eric Sanchez saves $60 a month by using coupons and doing comparison shopping. (a) What is the annual savings amount? (b) What would be

Assume Eric Sanchez saves $60 a month by using coupons and doing comparison shopping.

(a) What is the annual savings amount?

(b) What would be the future value of this annual amount over 10 years, assuming an interest rate of 3 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

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