Q. 2 Additive identity.
b) 1​

f the borrower, the amount borrowed, and the loan-to-loan 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 $1,250. The table shows the LLPA for various credit scores and an LTV ratio of 80%. (see picture)

(a) Construct a function C=C(s), where C is the loan-level price adjustment (LLPA) and s is the credit score of an individual who wishes to borrow $300,000 with an 80% LTV ratio.

(b) What is the LLPA on a $300,000 loan with an 80% LTV ratio for a borrower whose credit score is 725?

(c) What is the LLPA on a $300,000 loan with an 80% LTV ratio for a borrower whose credit score is 670? ​

Step-by-step explanation:

the answer is  

a.

4,624π mm2

step-by-step explanation:

let x and 400 - x be the two numbers.  

==> 0.80x + 0.85(400 - x) = 400 - 68 from the statement of the problem.  

< ==> 0.80x + 0.85(400 - x) = 400 - 68  

==> 340 - 0.05x = 332  

< ==> -0.05x = -8 ==> x = 160, the first number ==> 400 - x = 240, the second number.