FINA 200 - Personal Finance ©
Case
Summer EC1 2025
(due Monday, June 9, 2025, before 11:59 p.m. ET)
Covering Chapters 1 – 7
Student Name: Stefania Catalano Student ID: 20262821
PLEASE NOTE INSTRUCTIONS BELOW
• Write your name and student ID above.
• This is an individual assignment, to be completed by you alone.
• There are 12 pages to this Case including the cover page – please ensure that you have all 12
pages.
• The case consists of two sections. Answer:
1) Section I: respond directly on the Case. You MUST highlight AND underline your response to the
multiple-choice questions.
2) Section II: respond directly on the Case in the space provided for each Mini-Case question. You
MUST highlight AND underline where requested.
• You may submit your solution in English or French; acceptable submission formats include Word
(.docx or.doc) or PDF. EXCEL is NOT accepted.
• Ensure that all responses with calculations are to two decimal places.
• Tables can be found at the end of the Case to help respond to some of the questions.
• Outside research will be required (research does not require citations).
• Show your work (some questions award partial marks).
This Case is 25% of your grade.
For marking purposes only:
Multiple Mini- Mini-Case Mini-Case Mini-Case Mini- Total
Choice Case A B C D Case E
/5 /4 /6.5 /3.5 /5 /1 /25
© May not be copied or
duplicated without the
permission of the owner.
1
, Section I: Five (5) Multiple-Choice Questions (5 marks - 1 mark each)
Highlight AND underline your response.
1) Tyler is looking to purchase a 2025 GMC Sierra HD truck. After researching the cost, he realized he
would need to take out a loan. Since this would be his first loan, Tyler decided to shop around for
financing options. Drawing on what he learned in his Personal Finance course, he knew that the
posted (nominal) interest rates at banks don't reflect the true cost of borrowing. To make an
informed decision, Tyler converted each bank’s nominal rate into its effective annual rate (EAR). He
then chose the loan with the lowest effective rate. Which bank did Tyler choose? (Round to two
decimal places)
• Bank of Montreal’s nominal interest rate is 6.9%, compounded quarterly.
• CIBC’s nominal interest rate is 6.7%, compounded monthly.
• Bank of Nova Scotia’s nominal interest rate is 6.65%, compounded semi-monthly
a) Bank of Montreal
b) CIBC
c) Bank of Nova Scotia
d) Either the Bank of Montreal or Nova Scotia’s loan as the effective interest rates are equivalent
e) All rates are equivalent when calculating the effective interest rate; Tyler can apply for a loan
from any of the three banks.
2) Rita and her long-time boyfriend Max, both 24-year-old university graduates, recently started their
first full-time jobs with Bombardier, and are determined to save as much as possible for a future
home down payment. To help them reach their goal, Rita’s aunt and uncle have offered them the use
of their basement apartment for a modest rent of $400 per month, allowing the couple to significantly
reduce their living expenses. After carefully reviewing their budget, Rita and Max concluded that they
could each set aside $1,000 per month. Together, they established the following financial goal:
"We will save $26,000 over the next 12 months by each contributing $1,000 per month from our
salaries with Bombardier, along with any additional income that Rita earns from tutoring and Max
earns by driving for Uber on weekends. We will track our progress monthly and adjust our budget if
necessary to stay on target."
Which of the following best explains why their goal meets the SMART criteria?
a) It is measurable because they will review and track their progress monthly to see if they are on
track.
b) It is attainable because they have a specific plan to save a reasonable amount within their
means.
c) It is time-bound because they have set a clear deadline of 12 months to achieve their goal.
d) All of the above.
e) None of the above, as it is not a SMART goal since they can both adjust the budget anytime.
© May not be copied or
duplicated without the
permission of the owner.
2
Case
Summer EC1 2025
(due Monday, June 9, 2025, before 11:59 p.m. ET)
Covering Chapters 1 – 7
Student Name: Stefania Catalano Student ID: 20262821
PLEASE NOTE INSTRUCTIONS BELOW
• Write your name and student ID above.
• This is an individual assignment, to be completed by you alone.
• There are 12 pages to this Case including the cover page – please ensure that you have all 12
pages.
• The case consists of two sections. Answer:
1) Section I: respond directly on the Case. You MUST highlight AND underline your response to the
multiple-choice questions.
2) Section II: respond directly on the Case in the space provided for each Mini-Case question. You
MUST highlight AND underline where requested.
• You may submit your solution in English or French; acceptable submission formats include Word
(.docx or.doc) or PDF. EXCEL is NOT accepted.
• Ensure that all responses with calculations are to two decimal places.
• Tables can be found at the end of the Case to help respond to some of the questions.
• Outside research will be required (research does not require citations).
• Show your work (some questions award partial marks).
This Case is 25% of your grade.
For marking purposes only:
Multiple Mini- Mini-Case Mini-Case Mini-Case Mini- Total
Choice Case A B C D Case E
/5 /4 /6.5 /3.5 /5 /1 /25
© May not be copied or
duplicated without the
permission of the owner.
1
, Section I: Five (5) Multiple-Choice Questions (5 marks - 1 mark each)
Highlight AND underline your response.
1) Tyler is looking to purchase a 2025 GMC Sierra HD truck. After researching the cost, he realized he
would need to take out a loan. Since this would be his first loan, Tyler decided to shop around for
financing options. Drawing on what he learned in his Personal Finance course, he knew that the
posted (nominal) interest rates at banks don't reflect the true cost of borrowing. To make an
informed decision, Tyler converted each bank’s nominal rate into its effective annual rate (EAR). He
then chose the loan with the lowest effective rate. Which bank did Tyler choose? (Round to two
decimal places)
• Bank of Montreal’s nominal interest rate is 6.9%, compounded quarterly.
• CIBC’s nominal interest rate is 6.7%, compounded monthly.
• Bank of Nova Scotia’s nominal interest rate is 6.65%, compounded semi-monthly
a) Bank of Montreal
b) CIBC
c) Bank of Nova Scotia
d) Either the Bank of Montreal or Nova Scotia’s loan as the effective interest rates are equivalent
e) All rates are equivalent when calculating the effective interest rate; Tyler can apply for a loan
from any of the three banks.
2) Rita and her long-time boyfriend Max, both 24-year-old university graduates, recently started their
first full-time jobs with Bombardier, and are determined to save as much as possible for a future
home down payment. To help them reach their goal, Rita’s aunt and uncle have offered them the use
of their basement apartment for a modest rent of $400 per month, allowing the couple to significantly
reduce their living expenses. After carefully reviewing their budget, Rita and Max concluded that they
could each set aside $1,000 per month. Together, they established the following financial goal:
"We will save $26,000 over the next 12 months by each contributing $1,000 per month from our
salaries with Bombardier, along with any additional income that Rita earns from tutoring and Max
earns by driving for Uber on weekends. We will track our progress monthly and adjust our budget if
necessary to stay on target."
Which of the following best explains why their goal meets the SMART criteria?
a) It is measurable because they will review and track their progress monthly to see if they are on
track.
b) It is attainable because they have a specific plan to save a reasonable amount within their
means.
c) It is time-bound because they have set a clear deadline of 12 months to achieve their goal.
d) All of the above.
e) None of the above, as it is not a SMART goal since they can both adjust the budget anytime.
© May not be copied or
duplicated without the
permission of the owner.
2
