Question

(Credit Scores LC)

Review the simple interest rate based on FICO scores to answer the question:


FICO Score Simple Interest Rate
800–850 4.295%
740–799 5.597%
670–739 8.132%
580–669 9.358%
300–579 12.413%


A homeowner, with a credit score of 725, is planning a home improvement project and needs to borrow $3,500.00 with a simple interest rate loan. Determine the interest rate the homeowner will qualify for if they raise their credit score 40 points.
4.295%
5.597%
8.132%
9.358%

Answer 1

5.597% is the answer.

Answer 2

Well dang manny, didn't even give me time to get on here-

Answer 3

lol. could you explain?

Answer 4

But Manny is correct is would be 5.597.

Answer 5

Alright to right off the back we can see that c and d will not be it because they are too high for the numbers we have.

Answer 6

right

Answer 7

A and b are much more optional but it comes down to finding which one it is. We're also using simple interest in this.

Answer 8

the $3,500 is not important

Answer 9

oh! i know how to do that :). thank you

Answer 10

So, would you like to know how easy this question is?

Answer 11

and alright manny

Answer 12

and no thx, i understand the rest :)

Answer 13

just add the 40 points to the 725 look at the chart and boom there is ur answer

Answer 14

It asks what would it be if they raised it 40 points, all you have to do is look at the chart and ad 735 +40 the chart gives you your answer because of the categorization!

Answer 15

Alright, and i am posting my next question

Answer 16

Alrighty