Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 18

A bank credit card department uses a point system to assign credit limits to new applicants for revolving credit plans. Applicants scoring more than 100 points are assigned a credit limit of $5,000; those scoring 51 to 100 points are given a limit of $3,000; those scoring 31 to 50 are given a limit of $1,000; and those scoring 21 to 30 are given a limit of $500. Those applicants scoring 20 and less are refused a credit card. Points contribute to the total score according to various attributes taken from the applicant's questionnaire its follows:

Required:
Determine the credit limit to be assigned to Miss Rosalind Baker, a registered architect, who has just moved to a new community. She has earned about $100,000 annually for the past 5 years, owns a car, recently established checking and saving accounts at a local bank, and has a Shell Oil Company credit card (on which she charges gasoline for her automobile) and a MasterCard. Currently she rents an apartment in which she has both a business and a personal telephone. She has a clean credit record.