At a local bank, loan officers must evaluate loan applications before approving or denying them. During this evaluation process, many factors regarding the loan request and the applicant’s background are considered. If the loan is for less than $2000, the loan officer checks the applicant’s credit report. If the credit report is rated good or excellent, the loan officer approves the loan. If the credit report is rated fair, the officer checks to see if the applicant has an account at the bank. If the applicant holds an account, the application is approved; otherwise, the application is denied. If the credit report is rated poor, the application is denied. Loan applications for amounts between $2000 and $200,000 are divided into four categories: car, mortgage, education, and other. For car, mortgage, and other loan requests, the applicant’s credit report is reviewed and an employment check is made to verify the applicant’s reported salary income. If the credit report rating is poor, the loan is denied. If the credit report rating is fair, good, or excellent and the salary income is verified, the loan is approved. If the salary income is not verifiable, the applicant is contacted and additional information is requested. In this case, the loan application, along with the additional information, is sent to the vice president for review and a final loan decision. For educational loans, the educational institution the applicant will attend is contacted to determine the estimated cost of attendance. This amount is then compared to the amount of the loan requested in the application.

If the requested amount exceeds the cost of attendance, the loan is denied. Otherwise, education loan requests for amounts between $2000 and $34,999 are approved if the applicant’s credit rating is fair, good, or excellent. Education loan applications requesting amounts from $35,000 to $200,000 are approved only if the credit rating is good or excellent. All loan applications for amounts greater than $200,000 are sent to the vice president for review and approval. Use a decision table to represent this logic.