Question

Sam is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?

0%
3%
33%
50%

Answer 1

if he has a balance of $500 and the credit limit on the card is 1500 he has a utilization rate of 33% the reason being that 500 is 1/3 of 1500 or 33%