Applied Math 20 - Credit Card Assignment

A person has two choices of credit cards. The first card, a gold card, has a service charge of $138 per year. The second, a classic card, has no service charge. The gold card offers a cash rebate of 1% on all purchases made during the year with the card. The classic card offers a rebate, but on a tiered basis. The rebate is as follows:

On the first $1500 purchased with the card: 0.25%
On the next $1500 purchased with the card: 0.50%
On any spending above $3000: 1%

Depending on the amount spent each year; one card is a better deal for consumers than the other. There is an amount of spending at which each card pays the same rebate.

Below that amount, one card is better; above that amount the other card is better. Use a spreadsheet to find that amount. Make sure to include the service charges in your calculations. Save your spreadsheet in my dropbox when you are done.