Your credit card balance is $3655.65 and your credit limit is $8000

What is your debt ratio as a percentage to the nearest hundredth?

1 answer

To calculate the debt ratio as a percentage, you use the formula:

\[ \text{Debt Ratio} = \left( \frac{\text{Credit Card Balance}}{\text{Credit Limit}} \right) \times 100 \]

Plugging in the values:

\[ \text{Debt Ratio} = \left( \frac{3655.65}{8000} \right) \times 100 \]

Calculating the division:

\[ \frac{3655.65}{8000} = 0.457 Until (approx) \]

Now multiply by 100 to convert to a percentage:

\[ 0.457 Until \times 100 = 45.765 \]

Rounding to the nearest hundredth:

\[ \text{Debt Ratio} \approx 45.77% \]

So, the debt ratio is approximately 45.77%.