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Amy Perex's Savings and Banking Plans Amy Perez is a registered nurse who earns Php 25,000 per month after taxes. She has been reviewing her

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Amy Perex's Savings and Banking Plans Amy Perez is a registered nurse who earns Php 25,000 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes, Amy has a regular checking account which charges her a flat fee per month, writes an average of 18 checks a month, P750 during 3 months balance of P795 (although it has account is a money market deposit of the past year). Her only other account is to make regular monthly account with a balance of P4,250. She tries to market account but has only deposits of P50 to P100 about every other month. Of the many checking accounts, Amy's bank offers, the three that best suit her needs are: 1. Regular checking per item plans, P150 per month service charge plus P20/check. 2. Regular checking, flat fee plan, Monthly fee of P350 regardless of the number of checks written. With either of these Regular Checking accounts, she can avoid any charges by keeping a minimum daily balance of P750. 3. Interest checking Monthly service charge of P350, interest of 3 percent, compounded daily. With a minimum balance of P1,500 the monthly charge is waived. Her bank also offers certificates of deposit for a minimum deposi of P500, the current interest rates are 3.5 percent for 6 months 3.75 percent for 1 year and 4 percent for 2 years. Questions: 1. Calculate the annual cost of each of the three accounts, assuming that Amy's banking habits remain the same. Which plan would you recommend and why? 2. Should Amy consider opening the interest checking account and increasing her minimum balance to at least P1,500 to avoid service charged. Explain your answer. 3. What other advice tould you give Amy about her checking account and savings account

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