Final answer:
The question involves calculating total payments to pay off debt according to a budget and picking the best scenarios that match the budget constraint. Options a, c, and d potentially work with the $375 budget, allowing the debt to be paid in the specified months if the numbers are precise.
Step-by-step explanation:
The question asks about different scenarios involving paying off a debt while adhering to a budget and prioritizing debts with the highest interest first. To calculate the debt ratio, we generally compare total debt to total assets, but in the context of the question, we seem to be asked to confirm if the total payments, across several months, at a specific monthly rate, will cover the debt within the constraints of a $375 budget.
Let's look at the options given:
- Option a) involves 5 months of payments at $75 each. This means a total payment of 5 x $75 = $375, which fits exactly within the budget.
- Option b) involves 8 months of payments at $50 each. The total would be 8 x $50 = $400, which exceeds the budget.
- Option c) has 6 months of payments at $62.50 each. This totals 6 x $62.50 = $375, fitting within the budget.
- Option d) involves 7 months of payments at $53.57 each. Multiplying 7 times $53.57 gives us approximately $375, which also fits within the budget, but the exact figure would need to be calculated to ensure accuracy.
To maintain a good debt ratio, paying off debt in a manner that aligns with one's budget is essential. Out of the scenarios presented, options a, c, and potentially d, adhere to the budget constraint given the provided figures.