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Review the information given based on a principal balance of [tex]$\$[/tex]9,000[tex]$ to answer the question.

\begin{tabular}{|l|l|l|l|}
\hline
FICO Score & Simple Interest Rate & Total \# of Payments & Total Amount Paid \\
\hline
$[/tex]800-850[tex]$ & 12.96\% & 29 & $[/tex]\[tex]$9,256.00$[/tex] \\
\hline
[tex]$740-799$[/tex] & 15.76\% & 33 & [tex]$\$[/tex]9,812.00[tex]$ \\
\hline
$[/tex]670-739[tex]$ & 18.96\% & 39 & $[/tex]\[tex]$10,554.00$[/tex] \\
\hline
[tex]$580-669$[/tex] & 21.96\% & 49 & [tex]$\$[/tex]11,891.00[tex]$ \\
\hline
$[/tex]300-579[tex]$ & 28.76\% & 60 & $[/tex]\[tex]$14,945.00$[/tex] \\
\hline
\end{tabular}

Calculate how much more a household with a credit score of 525 will pay compared to a household with a credit score of 675.

A. [tex]$\$[/tex]4,391[tex]$
B. $[/tex]\[tex]$1,337$[/tex]
C. [tex]$\$[/tex]2,604[tex]$
D. $[/tex]\[tex]$3,491$[/tex]



Answer :

GinnyAnswer
To find out how much more a household with a credit score of 525 will pay compared to a household with a credit score of 675, follow these steps:

1. Identify the total amount paid by each household.

- Household with credit score of 525 (which falls in the range of 300-579) will pay \[tex]$14,945. - Household with credit score of 675 (which falls in the range of 670-739) will pay \$[/tex]10,554.

2. Calculate the difference in amount paid between these two households.

- Subtract the amount paid by the household with a credit score of 675 from the amount paid by the household with a score of 525:

[tex]\[ \$14,945 - \$10,554 = \$4,391 \][/tex]

Therefore, a household with a credit score of 525 will pay \[tex]$4,391 more compared to a household with a credit score of 675. The correct answer is: \[\$[/tex]4,391\]

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