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Review the information given based on a principal balance of [tex][tex]$\$[/tex]8,000$[/tex] to answer the question:

\begin{tabular}{|l|l|l|l|}
\hline FICO Score & Simple Interest Rate & Total \# of Payments & Total Amount Paid \\
\hline $800-850[tex]$ & $[/tex]12 \%[tex]$ & 29 & $[/tex]\[tex]$9,256.00$[/tex] \\
\hline [tex]$740-799$[/tex] & [tex]$15 \%$[/tex] & 33 & [tex]$\$[/tex]9,812.00[tex]$ \\
\hline $[/tex]670-739[tex]$ & $[/tex]18 \%[tex]$ & 38 & $[/tex]\[tex]$10,554.00$[/tex] \\
\hline [tex]$580-669$[/tex] & [tex]$21 \%$[/tex] & 48 & [tex]$\$[/tex]11,891.00[tex]$ \\
\hline $[/tex]300-579[tex]$ & $[/tex]28 \%[tex]$ & 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]$4,391
B. \$[/tex]1,337
C. \[tex]$2,604
D. \$[/tex]3,491

Sagot :

GinnyAnsweridn
To determine the additional amount a household with a credit score of 525 will pay compared to a household with a credit score of 675, we first locate the total amounts paid by each household in the table:

- For a household with a FICO score of 525 (which falls in the 300-579 range), the total amount paid is \[tex]$14,945.00. - For a household with a FICO score of 675 (which falls in the 670-739 range), the total amount paid is \$[/tex]10,554.00.

Next, we calculate the difference in the total amounts paid by these two households:
[tex]\[ \$14,945.00 - \$10,554.00 = \$4,391.00 \][/tex]

Thus, a household with a credit score of 525 will pay \[tex]$4,391.00 more compared to a household with a credit score of 675. So the correct answer is \$[/tex]4,391.00.
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