Question

8. An adverse market delivery charge rate depends on the credit score of the borrower, the amount borrowed, and the loan-to-value (LTV) ratio. The LTV ratio is the ratio of amount borrowed to appraised value of the home. For example, a homebuyer who wishes to borrow $250,000 with a credit score of 730 and an LTV ratio of 80% will pay 0.5% (0.005) of $250,000 or $1250. The table below shows the adverse delivery charge for various credit scores and an LTV ratio of 80%. Answer parts (a) through (c). Credit Score | Charge Rate ? 659 | 3.25% 660-679 | 2.75% 680-699 | 1.75% 700-719 | 1% 720-739 | 0.5% ? 740 | 0.25% (a) Construct a function C = C(s) where C is the adverse market delivery charge and s is the credit score of an individual who wishes to borrow $350,000 with an 80% LTV ratio. C(s) = $ if s ? 659 $ if 660 ? s ? 679 $ if 680 ? s ? 699 $ if 700 ? s ? 719 $ if 720 ? s ? 739 $ if s ? 740 (Simplify your answers.) (b) What is the adverse market delivery charge on a $350,000 loan with an 80% LTV ratio for a borrower whose credit score is 706? $ (c) What is the adverse market delivery charge on a $350,000 loan with an 80% LTV ratio for a borrower whose credit score is 692? $

          8. An adverse market delivery charge rate depends on the credit score of the borrower, the amount borrowed, and the loan-to-value (LTV) ratio. The LTV ratio is the ratio of amount borrowed to appraised value of the home. For example, a homebuyer who wishes to borrow $250,000 with a credit score of 730 and an LTV ratio of 80% will pay 0.5% (0.005) of $250,000 or $1250. The table below shows the adverse delivery charge for various credit scores and an LTV ratio of 80%. Answer parts (a) through (c).

Credit Score | Charge Rate
? 659 | 3.25%
660-679 | 2.75%
680-699 | 1.75%
700-719 | 1%
720-739 | 0.5%
? 740 | 0.25%

(a) Construct a function C = C(s) where C is the adverse market delivery charge and s is the credit score of an individual who wishes to borrow $350,000 with an 80% LTV ratio.

C(s) = 
$ ________ if s ? 659
$ ________ if 660 ? s ? 679
$ ________ if 680 ? s ? 699
$ ________ if 700 ? s ? 719
$ ________ if 720 ? s ? 739
$ ________ if s ? 740

(Simplify your answers.)

(b) What is the adverse market delivery charge on a $350,000 loan with an 80% LTV ratio for a borrower whose credit score is 706?
$

(c) What is the adverse market delivery charge on a $350,000 loan with an 80% LTV ratio for a borrower whose credit score is 692?
$

8. An adverse market delivery charge rate depends on the credit score of the borrower, the amount borrowed, and the loan-to-value (LTV) ratio. The LTV ratio is the ratio of amount borrowed to appraised value of the home. For example, a homebuyer who wishes to borrow 250,000 with a credit score of 730 and an LTV ratio of 80% will pay 0.5% (0.005) of $250,000 or $1250. The table below shows the adverse delivery charge for various credit scores and an LTV ratio of 80%. Answer parts (a) through (c).

Credit Score | Charge Rate
? 659 | 3.25%
660-679 | 2.75%
680-699 | 1.75%
700-719 | 1%
720-739 | 0.5%
? 740 | 0.25%

(a) Construct a function C = C(s) where C is the adverse market delivery charge and s is the credit score of an individual who wishes to borrow350,000 with an 80% LTV ratio.

C(s) =
if s ? 659 if 660 ? s ? 679
if 680 ? s ? 699 if 700 ? s ? 719
if 720 ? s ? 739 if s ? 740

(Simplify your answers.)

(b) What is the adverse market delivery charge on a 350,000 loan with an 80% LTV ratio for a borrower whose credit score is 706?

(c) What is the adverse market delivery charge on a 350,000 loan with an 80% LTV ratio for a borrower whose credit score is 692?

Added by Jesus T.

Question

Please give Ace some feedback