PLEASE DO IN EXCEL WITH CALCULATIONS 1. A potential home buyer is wondering about 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 membership 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. 3000

(2) 10,000. 5,000

(3) 15,000. 8,000

(a) How much credit capacity is she 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 in order to restore the total capacity used in all accounts prior to the transfer?