Question

Debra, age 28, earns $4740 per month. Every month she saves $410. Additionally, she has $2520 in outstanding credit cards and makes a $210 monthly payment of these cards. What is Debra’s approximate savings ratio? (Round answers to 2 decimal places, e.g. 52.75.)

Answer 1

Answer:

8.65%

Step-by-step explanation:

We have been given that Debra earns $4740 per month. Every month she saves $410. Additionally, she has $2520 in outstanding credit cards and makes a $210 monthly payment of these cards.

$\text{Savings ratio}=\frac{\text{Savings}}{\text{Income}}\times 100\%$

Upon substituting our given values in above formula, we will get:

$\text{Savings ratio}=\frac{410}{4740}\times 100\%$

$\text{Savings ratio}=0.08649789\times 100\%$

$\text{Savings ratio}=8.649789\%$

$\text{Savings ratio}\approx 8.65\%$

Therefore, Debra's approximate savings ratio is 8.65%.