00:01
We have to calculate the piecewise function c, which is the loan level price adjustment, which is dependent on s, which is the credit score.
00:10
So that will be given as c of s is equal to.
00:14
Now since this is as per the given schedule, it is at different credit scores.
00:20
It is a different proportion.
00:22
So we'll straight away calculate it as for the given proportions.
00:25
So 3 % of 300 ,000 will be 9 ,000 if the credit score is less than or equal to 659.
00:37
Next, 2 .5 % of 300 ,000, which will be 7 ,500 if 660 is less than or equal to s is less than or equal to 679.
00:51
It will be 5 ,250 which is 1 .75 % of 300 ,000 if the credit score lies between 680 and 699...