1. After graduating from college last fall, Elsa Crawford took a job as a consumer credit analyst at a local bank. From her work reviewing credit applications, she realizes that she should begin establishing her own credit history. Please describe for Elsa several steps that she could take to begin building a strong credit record. Does the fact that she took out a student loan for her college education help or hurt her credit record?

2. Otis Hopkins recently graduated from college and is evaluating two credit cards. Card A has an annual fee of $75 and an interest rate of 9 percent. Card B has no annual fee and an interest rate of 16 percent. Assuming that Otis intends to carry no balance and to pay off his charges in full each month, which card represents the better deal? If Otis expected to carry a significant balance from one month to the next, which card would be better? Explain.

3. Brian Nam was seriously injured in a skiing accident that broke both his legs and an arm. His medical expenses included five days of hospitalization at $900 a day, $6,200 in surgical fees, $4,300 in physicians fees (including time in the hospital and eight follow-up office visits), $520 in prescription medications, and $2,100 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts.

(a). If Brian had a health insurance plan indemnity plan that pays 80 percent of his charges with a $500 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket?

Following question is for students who take FIN 3633:

4. Fabio Rampulia, a 35-year-old computer programmer, earns $76,000 a year. His monthly take-home pay is $3,800. His wife, Regina, works part-time at their childrens elementary school but receives no benefits. Under state law, Fabios employer contributes to a workers compensation insurance fund that would provide $2,250 per month for six months if Fabio were disabled and unable to work.

Use Worksheet below to calculate Fabios disability insurance needs assuming that he wont qualify for Medicare under his Social Security benefits. Based on your calculation, what would you advise Fabio about his need for additional disability income insurance?

	DISABILITY BENEFIT NEEDS
Name(s):	Fabio Rampulia
1.	Estimate current monthly take-home pay				$ ___
2.	Estimate existing monthly disability benefits:
	a. Social security benefits	$______
	b. Other government benefits	______
	c. Company benefits	______
	d. Group disability policy benefits	______
3.	Total existing monthly disability benefits (2a + 2b + 2c + 2d)				$ ___
4.	Estimated monthly disability benefits needed ([1] [3])				$ ____