Before she applies for a long-term bank loan, Shira wants to figure out her debt-to-asset ratio. Shira has two liabilities: a credit card balance of $1,300 and a car loan balance of $4,800. Shira's car has a market value of $9,000. She also has a balance of $1,450 in her savings account and has stocks that are currently worth $1,050. What is Shira's debt-to-asset ratio?

Question

Before she applies for a long-term bank loan, Shira wants to figure out her debt-to-asset ratio. Shira has two liabilities: a credit card balance of $1,300 and a car loan balance of $4,800. Shira's car has a market value of $9,000. She also has a balance of $1,450 in her savings account and has stocks that are currently worth $1,050. What is Shira's debt-to-asset ratio?
(round your answer to the nearest whole percent)

The answer I got was 1.9

Bot · Accepted Answer

%. Debt = $6,100 Assets = $11,500 Debt-to-Asset Ratio = 6,100/11,500 = 0.529 Debt-to-Asset Ratio (in percent) = 0.529 x 100 = 52.9% Debt-to-Asset Ratio (rounded to nearest whole percent) = 53%