Question

Review the simple interest rate based on FICO scores to answer the question:

Answer 1

Using simple interest, it is found that Callie will save $157.32 ​if she is able to raise your credit score from 700 to 800.

Simple Interest

The amount of interest after t years in simple interest is modeled by:

$I = Prt$

In which:

• P is the initial amount.

• r is the interest rate, as a decimal.

• t is the time, in years.

In this problem:

• She plans to borrow $4,100.00 with a simple interest rate loan, hence $P = 4100$.

• One year, hence $t = 1$.

With a credit score of 700, the rate is of $r = 0.08132$, hence:

$I = 4100(0.08132) = 333.41$

With a credit score of 800, the rate is of $r = 0.04295$, hence:

$I = 4100(0.04295) = 176.09$

Then, the amount saved is:

$333.41 - 176.09 = 157.32$

Callie will save $157.32 ​if she is able to raise your credit score from 700 to 800.

To learn more about simple interest, you can take a look at brainly.com/question/25296782