finance- A bank wishes to earn a pure rate of 2 percent,

QUESTION

Use the following information for this and the following three questions.A bank wishes to earn a pure rate of 2 percent, and the inflation premium is 1.6%. The bank uses the Fair Issac Corporation (FICO) score to determine car loan rate for its customers. Based on an automobile loan applicant’s FICO score, it uses the following risk premium adjustment to the rate it quotes.FICO ScoreRisk Premium %>7401.00%720-7391.10%700-7191.30%680-6991.60%660-6791.90%640-6592.20%620-6392.50%<6207.50%What annual percentage rate will it quote to John Smith who has a FICO score of 645?If John Smith’s FICO score drops to 615, what will be the percent change in the APR?Jane Smith applies for a car loan to the bank and the bank quotes her an APR of 4.98 percent. In which range does Jane Smith’s FICO score fall?   ANSWER: REQUEST HELP FROM A TUTOR