Question

Quentin currently owes a total of $1,551.42 on his revolving credit accounts. What is Quentin's debt-to-credit ratio if his total revolving credit limit is $8,619.00? (4 points)

18%
23%
29%
31%

Answer 1

(a) 18%

Explanation:

The debt to credit ratio is found by dividing his debt by his credit limit.

__

using the definition

ratio = debt/credit limit = $1551.42/$8619.00 ≈ 0.18 = 18%

Quentin's debt to credit ratio is 18%.