The most Stanley can afford to pay per year in mortgage payments is $12,000, and his credit score is currently 544. According to
the following table for a $150,000 mortgage, by how many points would he need to improve his credit score in order to take a mortgage for $150,000? FICO Score 720-850 700-719 675-699 620-674 560-619 500-559 Interest Rate 5.59% 5.71% 6.25% 7.40% 8.53% 9.29% Monthly Payment $860 $872 $924 $1,039 $1,157 $1,238 O A. 156 points OB. 131 points O C. 76 points O D. 14 points
1 answer:
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Answer:
The absolute difference is:
If we find the % of change respect the before case we have this:
So then is a big change.
Step-by-step explanation:
The subindex B is for the before case and the subindex A is for the after case
Before case (with 500)
For this case we have the following dataset:
500 200 250 275 300
We can calculate the mean with the following formula:
And the sample deviation with the following formula:
After case (With -500 instead of 500)
For this case we have the following dataset:
-500 200 250 275 300
We can calculate the mean with the following formula:
And the sample deviation with the following formula:
And as we can see we have a significant change between the two values for the two cases.
The absolute difference is:
If we find the % of change respect the before case we have this:
So then is a big change.