As noted on the top of page 3 in the case, three customer archetypes were transactors, revolvers, and dormants. Calculate the profitability for each type of customer in the first year with the 100,000 sign-up bonus for the Chase Sapphire Reserve card, making the following assumptions and using numbers from the case as appropriate (where ranges are provided, use averages) [see below for the required format to show your calculations].

Transactors/Revolvers:

• Both spend $16,000 per year

• Credit balance carried: $0 for transactors, 50% of annual spend for revolvers

• Renew the card at $450 annual fee

Dormants:

• Spend only enough to earn the sign-on bonus

• Credit balance carried: $0

• Do not renew card at $450 annual fee

Format for showing calculations: For showing your answer, make a table with 5 columns with the first column listing the items, the second any assumptions or explanations in your calculation, and the remaining 3 columns for the numbers for each segment. Create the table in excel and import it into the word document of your assignment or create it directly in word. The table can break across pages if needed.