6
practice examMultiple Choice

Practice Exam

Question 6 • Financial Math

Haniya has a credit rating of 750 , and Brinley has a credit rating of 610 They each apply for a mortgage from the same lender. Haniya is given an interest rate of 3.75% , while Brinley is given a rate that is 1.5 percentage points higher. What interest rate will Brinley pay?

Answer
A
5 point 2 5 percent
B
2 point 2 5 percent
C
3 point 7 5 percent
D
5 point 0 percent

Explanation

Brinley’s rate is 1.5 percentage points higher than Haniya’s 3.75% rate, so add the rates: 3.75% + 1.50% = 5.25%. Brinley will pay 5.25%, which is choice A, “5 point 2 5 percent.”

AI-written and checked against the verified answer.

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