Let's solve this question step-by-step:
1. Identify the initial conditions:
- The initial credit score of the consumer is 825.
2. Determine the change in the FICO score:
- The FICO score decreases by 80 points.
3. Calculate the new FICO score:
- New FICO score = Initial FICO score - Decrease in FICO score
- New FICO score = 825 - 80
- New FICO score = 745
4. Determine the interest rate for the new FICO score:
- We need to find the applicable interest rate for a FICO score of 745.
- According to the given interest rate table:
- FICO score range: 740-799 corresponds to a simple interest rate of 5.597%.
5. Conclusion:
- With the new FICO score of 745, the consumer qualifies for a simple interest rate of 5.597%.
So, the interest rate the consumer will qualify for, after their credit score decreases by 80 points, is 5.597%.
