Robert thinks his personal finance is not so healthy in terms of managing debt. He has a $12 000 credit card liability, a $10 000 car loan, and a $300 000 mortgage liability. Robert possesses a car worth $12 000 and an apartment worth $388 000. What is Robert's debt to asset ratio?

Question

Quizplus · Accepted Answer

Robert's total debt is $12,000 + $10,000 + $300,000 = $322,000. His total assets are $12,000 + $388,000 = $400,000. Therefore, his debt-to-asset ratio is $322,000 / $400,000 = 80.5%.

Robert Thinks His Personal Finance Is Not So Healthy in Terms