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 (e)
Credit Score
$650
Charge Rate
3.75%
660-679
2.5%
680-699
1.5%
700-719
1%
720-739
2740
0.5%
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 $300,000 with an 80%
LTV ratio
ifss 659
if 660 679
if 680 699
C(S)-
if 700 sss 719
72055739
740
(Simplify your answers.)