Question

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

Answer 1

Answer:

33.33%

Explanation:

The debt ratio percentage is calculated as:

Liabilities / Net worth = Debt Ratio Percentage

$25,000 / $75,000 = 0.3333

0.3333 * 100 = 33.33%

The debt ratio is easy to calculate and is calculated by dividing the total liabilities of a person with the total net worth of the person. Dividing both gives a figure in decimal which is then multiplied by 100 to derive a percentage.