Question

Elijah currently owes a total of $2,127.50 on his revolving credit accounts. What is Elijah's debt-to-credit ratio if the total of his revolving credit limits is $5,750.00? Round the final answer to the nearest whole percent.

a
27%

b
37%

c
41%

d
50%

Answer 1

Answer: Elijah's debt-to-credit ratio is 37%.

Explanation:

Elijah's debt-to-credit ratio is the ratio of the amount of money he owes to the total amount of credit he has available.

To calculate the debt-to-credit ratio, we need to divide the amount of debt by the total amount of credit, and then multiply by 100 to get the answer in percentage.

Debt = $2,127.50

Credit = $5,750.00

Debt-to-credit ratio = (Debt / Credit) * 100

Debt-to-credit ratio = (2127.50 / 5750) * 100 = 37.29 ~ 37%

So the answer is: b) 37%