Final answer:
Raya Mancillas's debt-to-equity ratio, calculated by dividing her total debts ($102,000) by her equity ($24,000), is 4.25. This result does not match any of the provided multiple-choice answers, suggesting an error in the question or options. None of the provided multiple-choice answers (a. 3.2, b. 2.0, c. 2.7, d. 0.5, e. 0.3) match the calculated result of 4.25, indicating a possible mistake in the question or in the provided options.
Step-by-step explanation:
To calculate Raya Mancillas's debt-to-equity ratio, we must first establish what counts as her debts and equity. Her debts include the $90,000 mortgage and the $12,000 car loan, totaling $102,000 in debts. Her equity is her net worth excluding her home, which is $24,000.
The debt-to-equity ratio is calculated by dividing total debt by total equity. Therefore, Raya's debt-to-equity ratio is:
Debt-to-Equity Ratio = Total Debt / Total Equity
= $102,000 / $24,000
= 4.25
The debt-to-equity ratio is a financial ratio that compares a person's total debt to their equity, which represents their net worth. To calculate Raya's debt-to-equity ratio, you need to divide her total debt by her net worth:
Total debt = Mortgage amount + Car loan amount = $90,000 + $12,000 = $102,000
Net worth = $24,000 (excluding home)
Debt-to-equity ratio = Total debt / Net worth = $102,000 / $24,000 = 4.25
Therefore, Raya's debt-to-equity ratio is 4.25.
None of the provided multiple-choice answers (a. 3.2, b. 2.0, c. 2.7, d. 0.5, e. 0.3) match the calculated result of 4.25, indicating a possible mistake in the question or in the provided options.