Sarah has $15,000 in monetary assets,$48,000 in annual living expenses,a $20,000 balance on her car loan,and $60,000 of equity in her house.What is her month's living expenses covered ratio?

Question

Quizplus · Accepted Answer

The month's living expenses covered ratio is calculated by dividing monetary assets by monthly living expenses. Sarah's monthly living expenses are $48,000 / 12 = $4,000. Her monetary assets are $15,000. Therefore, the ratio is $15,000 / $4,000 = 3.75 times.

Sarah Has $15,000 in Monetary Assets,$48,000 in Annual Living Expenses,a