Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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

Callie plans to borrow $4,100.00 with a simple interest rate loan. determine the amount of Interest Callie will save if she is able to raise your credit score from 700 to 800.
$49.91
$70.27
$176.10
$157.32 ​

Review The Simple Interest Rate Based On FICO Scores To Answer The Question Callie Plans To Borrow 410000 With A Simple Interest Rate Loan Determine The Amount class=

Sagot :

Using simple interest, it is found that Callie will save $157.32 ​if she is able to raise your credit score from 700 to 800.

Simple Interest

The amount of interest after t years in simple interest is modeled by:

[tex]I = Prt[/tex]

In which:

  • P is the initial amount.
  • r is the interest rate, as a decimal.
  • t is the time, in years.

In this problem:

  • She plans to borrow $4,100.00 with a simple interest rate loan, hence [tex]P = 4100[/tex].
  • One year, hence [tex]t = 1[/tex].

With a credit score of 700, the rate is of [tex]r = 0.08132[/tex], hence:

[tex]I = 4100(0.08132) = 333.41[/tex]

With a credit score of 800, the rate is of [tex]r = 0.04295[/tex], hence:

[tex]I = 4100(0.04295) = 176.09[/tex]

Then, the amount saved is:

[tex]333.41 - 176.09 = 157.32[/tex]

Callie will save $157.32 ​if she is able to raise your credit score from 700 to 800.

To learn more about simple interest, you can take a look at https://brainly.com/question/25296782

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.