ok, so one measure of the health of your finances is the debt ratio. it shows the relationship between debt…

ok, so one measure of the health of your finances is the debt ratio. it shows the relationship between debt and assets; a low debt ratio is best. jamie lee jackson ive heard of it, but could you remind me? susie of course! it is your liabilities divided by your assets. what is your debt ratio? (round to two decimal places.) income monthly in/outflow account/item balance gross monthly salary $2,187 checking account $1,312 net monthly salary $1,531 emergency fund savings $3,174 expenses rent $269 car $3,762 utilities $89 credit card balance $387 food $152 student loan $5,374 gas/maintenance $103 credit card $53 savings regular savings $161 rainy day savings $41 entertainment cake decorating class $46 movies with friends $36 enter a response then click submit below submit

ok, so one measure of the health of your finances is the debt ratio. it shows the relationship between debt and assets; a low debt ratio is best. jamie lee jackson ive heard of it, but could you remind me? susie of course! it is your liabilities divided by your assets. what is your debt ratio? (round to two decimal places.) income monthly in/outflow account/item balance gross monthly salary $2,187 checking account $1,312 net monthly salary $1,531 emergency fund savings $3,174 expenses rent $269 car $3,762 utilities $89 credit card balance $387 food $152 student loan $5,374 gas/maintenance $103 credit card $53 savings regular savings $161 rainy day savings $41 entertainment cake decorating class $46 movies with friends $36 enter a response then click submit below submit

Answer

Explanation:

Step1: Identify liabilities

Liabilities are credit - card balance and student loan. So, total liabilities = $387 + 5374=$5761$.

Step2: Identify assets

Assets are checking account, emergency - fund savings, and car. So, total assets = $1312+3174 + 3762=$8248$.

Step3: Calculate debt ratio

Debt ratio = $\frac{\text{Liabilities}}{\text{Assets}}=\frac{5761}{8248}\approx0.70$.

Answer:

$0.70$