Given the following information, calculate the debt ratio percentage: Liabilities = $25,000
Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000 Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

Question

Quizplus · Accepted Answer

The debt ratio is calculated as total liabilities divided by total assets. Given liabilities of $25,000 and a net worth (assets minus liabilities) of $75,000, the total assets are $100,000 ($75,000 net worth + $25,000 liabilities). Therefore, the debt ratio is ($25,000 / $100,000) * 100 = 25%. However, none of the provided options correctly matches this calculation, suggesting a potential misunderstanding in the question or the provided options. Given the options, none directly correspond to the correct calculation based on the provided data.

Given the Following Information, Calculate the Debt Ratio Percentage: Liabilities