Question 1 . You decide to take advantage of personal credit and get yourself a credit card. You have done some research and found 2 different cards that you qualify for. Determine which card would be the best option for you if you: a. carry a $5,000 balance on your credit card and b. dont carry a balance on your credit card. Show the calculations for full marks. (5 marks) Card A: Card B: 22% APR 10% APR 3% cash back on purchases $200 annual fee $100 annual fee

Question 2 . You are looking to purchase a new car for yourself. You have shopped around and found the car of your dreams. It costs $15,000. You have $2,000 in your savings account that you are going to use for a down payment and you plan to borrow the remaining $13,000. You have some different options to choose from for financing the car through your bank and through the car dealership. With the information below, calculate the different options and decide which is the best option for you. Show your calculations to receive full marks. (7 marks) APR Compounded Monthly Term of Loan Processing Fee Monthly Payment Total Amount Repaid Total Interest Cost Bank 6% 36 months --- Dealership 5% 48 months 1%

Question 3 You are trying to decide whether or not to take advantage of personal credit (borrowing) to finance your purchases. You know there are advantages and disadvantages that come along with credit. List and describe 3 advantages and 3 disadvantages of personal credit. (3 marks)

Question 4 Develop two suggestions that could help you reduce your income tax exposure.(2 marks)