Serena's salary is $$120,000$ per year. She contributes $12\%$ of her salary to her $401(K)$ plan.

of her salary to a $401(k)$ plan. She also contributes $$2,500$ per year to an IRA. Serena's annual savings rate is$?$

$14\mathrm{.}08\%$

$19\mathrm{.}08$

$12\mathrm{.}00\%$

$17\mathrm{.}00\%$

Question $2$

Which of the following is not a reason for the popularity of credit cards?

It is an alternative to holding large cash balances.

Bank loans are more costly for amounts under a few thousand dollars when fixed costs and transaction costs are included.

It can be used to even out flows of expenditures.

All of these answers are reasons for the popularity of credit cards.

Convenience.