Using the loan rate available to someone with a FICO credit score of 750, calculate the monthly payment and total paid over the life of a $250,000 30-year fixed-rate mortgage for someone with this credit score.

The problem you must solve is:
Lenders primarily use the Fair Isaac Corporation (FICO) model to determine credit scores. FICO
grades consumers on a 300- to 850-point range; a higher score indicates less risk to the
lender. A score of 800 or higher is considered exceptional; 740 to 799 is very good; 670 to 739 is
good; 580 to 669 is fair; and 579 or lower is poor.
According to MyFICO.com your credit score can impact interest rates available to
you as follows:
FICO score APR
760–850 4.17%
700–759 4.392%
680–699 4.569%
660–679 4.783%
640–659 5.213%
620–639 5.759%
a) Using the loan rate available to someone with a FICO credit score of 750, calculate the
monthly payment and total paid over the life of a $250,000 30-year fixed-rate mortgage for
someone with this credit score.
b) Now, calculate the monthly payment and total paid using the loan rate available to someone
with a FICO credit score of 650.
c) Calculate the difference in monthly payment and the total interest paid for someone with a
very good credit rating (750) with someone who has a low credit rating (650).