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svp
3 days ago
8

QUESTION 1 of 10: You want to purchase your first house. A conventional mortgage will require a credit score of approximately 63

0. Your
credit score is 560. You need to increase it by 70 points to get to 630. If you increase your score by 12% per year, how many years will it take
to lift your score to 630?
a) 1.1 yrs
b) 2.3 yrs
c) 26 yrs.
d) 12 yrs.
Submit
45 minutes
Business
2 answers:
harina [3.8K]3 days ago
6 0
The accurate selection is A. It will require 1.1 years to elevate the credit score from 560 to 630. Explanation: At year 0, the score is 560. In year 1, it escalates to 627.2 points, which arises from 560 multiplied by 1.12. By year 2, this grows to 702.4 points after applying the 12% increase. Across the entire duration of year 2, the score rises by 75.2 points, averaging a monthly increase of 6.2 points (75.2 divided by 12). Since in year 1 the score was 627.2, and increases hit 6.2 in the first month of year 2, it reaches 633.4, confirming that it will take about 1.1 years to attain a score of 630.
arsen [3.4K]3 days ago
5 0
The answer is A) 1.1 Years, derived from the equation 560(1+.12)^?. By substituting the options into the equation, find the one that provides a close approximation; 634.348 is obtained at 1.1 years, marking it the closest to the expected answer.
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