Part I. Time Value of Money and Bonds You recently got a job working for a credit card company. You are working in the department that oversees some of the "rewards programs" associated with the credit cards your company offers. One of the simpler programs is a "cash back" rewards program. In this program, your company offers 4% cash back on purchases in certain categories (e.g. restaurants, entertainment, and groceries). The way this works is that if one of the holders of this credit card spends $100 on approved purchases in a given month, then at the end of the month, your company would pay that cardholder $4.00 ( 4% of the $100 spent during that month). To compensate for these rewards, you also charge cardholders an annual fee. A cardholder would pay this fee once at the beginning of the year, and then receive cash back at the end of each month. 1. Suppose that a typical consumer with this card will spend $2,000 in a month. You can assume then, that in a typical year this consumer will spend $2,000 each month for 12 months. Your corporate treasurer tells you that your company can earn .8% interest per month investing the money that you receive when you collect cardholders' annual fees. Based on this return, what is the least that you could afford to charge cardholders as an annual fee in order to break even on your rewards program