Answer:
Explanation:
Debt ratio for the Lee household = Total Liabilities/ Total Monthly Income
= 2,538+ 2,538 + 170+ 56936/ 71,128/ 12= 62,182/5927= 10.49
In other words Mike and Mary Jane Lee have a monthly Debt ratio of 1049 %
Which is very high
Debt ratio for the Lee household = Total Liabilities/ Total Yearly Income
= 2,538+ 2,538 + 170+ 56936/ 71,128= 62,182/71,128= 0.87
there are number of ways of calculating Debt ratios.
In other words Mike and Mary Jane Lee have a yearly Debt ratio of 87%