To determine the interest rate the consumer will qualify for if they raise their credit score by 60 points, we can follow these steps:
1. Initial Credit Score: The consumer currently has a credit score of 645.
2. Credit Score Increment: The consumer plans to raise their credit score by 60 points.
3. Calculate the New Credit Score: Add the increment to the initial score:
[tex]\[
\text{New Credit Score} = 645 + 60 = 705
\][/tex]
4. Determine the Interest Rate: Based on the new credit score of 705, we should refer to the given table.
According to the table:
\begin{itemize}
\item [tex]$800-850$[/tex] : [tex]$4.295\%$[/tex]
\item [tex]$740-799$[/tex] : [tex]$5.597\%$[/tex]
\item [tex]$670-739$[/tex] : [tex]$8.132\%$[/tex]
\item [tex]$580-669$[/tex] : [tex]$9.358\%$[/tex]
\item [tex]$300-579$[/tex] : [tex]$12.413\%$[/tex]
\end{itemize}
5. Locate the Appropriate Range: The new credit score of 705 falls within the range [tex]$670-739$[/tex].
6. Identify the Interest Rate: The interest rate associated with the range [tex]$670-739$[/tex] is [tex]$8.132\%$[/tex].
So, if the consumer raises their credit score by 60 points to 705, they will qualify for an interest rate of [tex]$8.132\%$[/tex].
