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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

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