Question

prob 17. carson has a credit rating of 680, while jaylen has a credit rating of 590. both apply for the same type of car loan from highway credit union. carson is approved for the loan at 4.5% interest. jaylen is approved at an interest rate that is 2 percentage points higher than carsons due to his lower credit score. what interest rate is jaylen charged? prob 18. kinley has a credit score of 800, but her friend sadie has a credit score of 620. when they apply for personal loans at local bank, kinley receives an offer with 5% interest. sadie is offered a rate that is 4 percentage points higher due to her lower credit score. what is sadies interest rate? prob 19. which agency is responsible for providing a credit report? consumer financial protection bureau federal reserve internal revenue service credit reporting agency

Explanation:

• Prob 17: Generally, lower credit scores lead to higher interest rates. Jaylen has a lower credit - rating (590) compared to Carson (680). If Carson is approved at 4.5% and Jaylen's rate is 2 percentage points higher, Jaylen's interest rate is calculated based on this relationship.
• Prob 18: Sadie has a lower credit score (620) than Kinley (800). Since Sadie is offered a rate 4 percentage points higher than Kinley's 5% rate, we can determine Sadie's rate using this difference.
• Prob 19: Credit reporting agencies are responsible for providing credit reports.

Answer:

• Prob 17: Jaylen is charged a 6.5% interest rate (4.5% + 2% = 6.5%).
• Prob 18: Sadie's interest rate is 9% (5%+4% = 9%).
• Prob 19: Credit Reporting Agency.