Write your response in the space provided or highlight AND underline your response where indicated. You may use additional space if needed to show your work. Some answers are eligible for partial marks, so it$$s best to show your work.

Mini$-$Case A: $(6\mathrm{.}5$ marks$)$

Maya, a $22-$year$-$old university student, has a credit score of $640,$ which is considered fair. She wants to improve her score to qualify for a lower interest rate on a car loan when she graduates next year. Here is an overview of her financial situation:

$$ Maya has had a Mastercard with a $$1,000$ limit since she was $18$ years old, which she maxes out each month.

$$ She only makes the $$50$ minimum payment leaving her with just $$50$ in available credit for new purchases each month.

$$ She missed two credit card payments in the past year, but it is only because she forgot to pay.

$$ Since her Mastercard is always at its credit limit$,$ Maya decided to apply for a second credit card to use in emergencies. She is currently awaiting a response from Visa.

$$ She has a student loan of $$10,000$ with the Royal Bank of Canada $($RBC$)$ but is not required to start reimbursing until after graduation.

$$ She earns a gross monthly part$-$time salary of $$1,000$ and spends the entire net monthly pay of $$800$ as follows: $$500$ to repay her parents for the car they purchased for her, $$100$ on her cellphone bill, $$50$ as a minimum monthly payment on her Mastercard, and $$150$ on hair, manicures, and pedicures.

$$ She lives with her parents but is looking to move into an apartment with two girlfriends once she graduates in April $2026$ and secures a full$-$time job.

b$)$ Since Maya missed two minimum payments on her credit card and keeps a running monthly balance, is Maya entitled to the $21-$day grace period on any new purchases?

$(\mathrm{.}5$ marks for $\mathrm{.}25$ marks each$)$

Yes or No Highlight and Underline the correct response.

Explain:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

c$)$ Based on her current financial situation, provide three strategies Maya must implement over the next $12$ months to improve her credit score. $(1\mathrm{.}5$ marks for $\mathrm{.}5$ marks each$)$

$1\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$2\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$3\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

d$)$ Explain why improving her credit score is important. $(\mathrm{.}5$ marks$)$

Explain:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

e$)$ Explain why checking her credit report is important. $(\mathrm{.}5$ marks$)$

Explain:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

f$)$ If Maya reviews her credit report with one of the credit bureaus $($either Equifax or Transunion$),$ will this impact her credit score? Explain. $(\mathrm{.}5$ marks for $\mathrm{.}25$ marks each$)$

Yes or No Highlight and Underline the correct response.

Explain:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

g$)$ Explain Minimum Payment on a credit card. $(\mathrm{.}5$ marks$)$

Explain:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

h$)$ Maya is unsure how credit card interest works and is just learning about the important concept of compounding interest. Highlight and Underline the correct response. $(\mathrm{.}5$ marks$)$

Compounding interest frequency on major credit cards:

Annually; Quarterly; Monthly;