Question

2. (04.01 MC)

Gwen owes a total of $3,135.00 on revolving credit accounts that have total limits of $6,740.00. Calculate the amount she needs to pay on her debt to reduce her revolving
credit accounts to reach a 25% debt-to-credit ratio. (1 point)
$1,300.50
$1,450.00
$1,500.00

Answer 1

(b) $1450

Explanation:

For her debt-to-credit ratio to be 25%, Gwen must reduce her credit accounts balance to 25% of her limits of $6740. That balance will be ...

0.25 × $6740 = $1685

__

To get her balance down to that amount, she must reduce it by ...

$3135 -1685 = $1,450.00