Question

Sasha owes a total of $1,845.00 on revolving credit accounts that have total limits of $4,500.00. Calculate the amount she needs to pay on her debt to reduce her revolving credit accounts to reach a 25% debt-to-credit ratio. $705.00$720.00$988.00$1,125.00

Answer 1

Sashas total debt is 1845

Total limit on the credit card account is 4500

25 × 4500 / 100 = 1125

25% of 4500 is 1125

So in order to reach a 25% debt to credit ratio Sasha needs to payback 720 of her debt.

1845 - 1125 = 720

Option B is the answer