Question

QUESTION 1 of 10: You want to purchase your first house. A conventional mortgage will require a credit score of approximately 630. 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

Answer 1

Answer:

The correct answer is A. It will take 1.1 years to increase the credit score from 560 to 630.

Explanation:

Year 0: 560 points

Year 1: 560 x 1.12 = 627.2 points

Year 2: 627.2 x 1.12 = 702.4 points

Through the entire year 2, the credit score increased 75.2 points, that is, 6.2 points per month (75.2 / 12 = 6.2).

As year 1 gave a credit score of 627.2, and during the first month of year 2 the score was increased in 6.2 points reaching 633.4 points, it will take 1.1 years to lift the score to 630.

Answer 2

The Answer is A) 1.1 Years and the equation for this is 560(1+.12)^? Then plug the answers into the equation and find the one that works 634.348 is what you get from 1.1 but since it’s the closest it’s the answer.