Question: c. After the transfer, how much would an increase in the total credit limit have to be in account #3 to restore the total capacity

 c. After the transfer, how much would an increase in the

c. After the transfer, how much would an increase in the total credit limit have to be in account #3 to restore the total capacity used in all accounts prior to the transfer

A potential home buyer is wondering about her credit card accounts and the effect that they may have on her credit score which will be evaluated when she applies for a mortgage loan. At present, she has 3 accounts with credit limits and balances outstanding as follows: She would like to transfer the balance in account #2 to account #3 in order to save the mem- bership fee and because the interest charges for account #2 are higher than the others. If she does this account #2 would be closed. Account Limit Outstanding Balance (1) $ 5,000 $3,000 (2) 10,000 5,000 (3) 15,000 8,000 (a) How much credit capacity is she currently using? (b) If she cancels account #2 and transfers the balance to account #3, what will be the capacity used now? (c) After the transfer, how much would an increase in the total credit limit have to be in account #3 to restore the total capacity used in all accounts prior to the transfer? A potential home buyer is wondering about her credit card accounts and the effect that they may have on her credit score which will be evaluated when she applies for a mortgage loan. At present, she has 3 accounts with credit limits and balances outstanding as follows: She would like to transfer the balance in account #2 to account #3 in order to save the mem- bership fee and because the interest charges for account #2 are higher than the others. If she does this account #2 would be closed. Account Limit Outstanding Balance (1) $ 5,000 $3,000 (2) 10,000 5,000 (3) 15,000 8,000 (a) How much credit capacity is she currently using? (b) If she cancels account #2 and transfers the balance to account #3, what will be the capacity used now? (c) After the transfer, how much would an increase in the total credit limit have to be in account #3 to restore the total capacity used in all accounts prior to the transfer

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