ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The family has liabilities of $128, 000 and assets of $340, 000. What is their debt ratio?
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38%
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2.65%
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265%
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0.376%
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Explanation:
Detailed explanation-1: -The total-debt-to-total-asset ratio is calculated by dividing a company’s total debts by its total assets.
Detailed explanation-2: -Total liabilities ÷ Total assets. Pro Tip: Your balance sheet will provide you with the totals you need in order to calculate your debt-to-asset ratio. $75, 000 (liabilities) ÷ $68, 000 (assets) = 1.1 debt-to-asset ratio. More items •18-May-2022
Detailed explanation-3: -Add up your monthly bills which may include: Monthly rent or house payment. Divide the total by your gross monthly income, which is your income before taxes. The result is your DTI, which will be in the form of a percentage. The lower the DTI, the less risky you are to lenders.
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