#1 #2 Problem 4 A potential home buyer is wondering about her credit card accounts and the effect that might have on her credit score which will be evaluated when she applies for a mortgage loan. At present she has three accounts with credit limits and balances as follows: Account Limit Outstanding Balance $10,000 $6,000 $20,000 $10,000 $30,000 $16,000 She would like to transfer the balance in account #2 to account #3 in order to save the membership fee and because the interest charges for account #2 are higher than the others. If she does this the account #2 would be closed. A. How much credit capacity is she currently using before any transfer? If she cancels account #2 and transfers the balance to account N3, what will be the capacity used now? B. After the transfer, how much would an increase in the total credit limit have to be in account 13 to restore the total capacity used in all accounts prior to the transfer? #3