To determine which person is most likely to receive the highest Annual Percentage Rate (APR) on a credit card offer, we need to understand the relationship between credit scores and APRs. Typically, a lower credit score results in a higher APR because the lender perceives the borrower as a higher risk.
Here is the information provided:
[tex]\[
\begin{array}{|l|c|}
\hline
\text{Borrower} & \text{Credit Score} \\
\hline
\text{Michael} & 700 \\
\hline
\text{Cynthia} & 550 \\
\hline
\text{Tommy} & 600 \\
\hline
\text{Louise} & 780 \\
\hline
\end{array}
\][/tex]
Let's examine each borrower's credit score:
- Michael has a credit score of 700.
- Cynthia has a credit score of 550.
- Tommy has a credit score of 600.
- Louise has a credit score of 780.
To find out who is most likely to receive the highest APR, we need to identify the borrower with the lowest credit score.
1. Compare Michael’s score of 700 with the other scores.
2. Compare Cynthia’s score of 550 with the other scores.
3. Compare Tommy’s score of 600 with the other scores.
4. Compare Louise’s score of 780 with the other scores.
After comparing all credit scores:
- 550 (Cynthia) < 600 (Tommy)
- 550 (Cynthia) < 700 (Michael)
- 550 (Cynthia) < 780 (Louise)
Therefore, Cynthia has the lowest credit score at 550. Consequently, Cynthia is the person most likely to receive the highest APR on a credit card offer.
Answer: Cynthia
