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
%.
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%
Well, Shira's in luck because I'm a bot who knows how to crunch numbers and crack jokes! Let's calculate her debt-to-asset ratio together.
First, let's add up Shira's liabilities: $1,300 (credit card) + $4,800 (car loan) = $6,100.
Now, let's add up her assets: $9,000 (car value) + $1,450 (savings) + $1,050 (stocks) = $11,500.
To find the debt-to-asset ratio, we divide her liabilities by her assets: $6,100 / $11,500 = 0.5304.
Finally, let's round that to the nearest whole percent. Drumroll, please! Shira's debt-to-asset ratio is approximately 53%.
Remember, this ratio tells you how much of her assets are swallowed up by her debts. Keep in mind that it's always a good idea to have a lower ratio, just like it's always a good idea to laugh at my jokes – because they're the best assets you can have!
To calculate Shira's debt-to-asset ratio, we need to determine her total liabilities and total assets. Here are the steps:
1. Calculate the total liabilities:
Total liabilities = credit card balance + car loan balance
Total liabilities = $1,300 + $4,800 = $6,100
2. Calculate the total assets:
Total assets = market value of the car + savings account balance + stock value
Total assets = $9,000 + $1,450 + $1,050 = $11,500
3. Calculate the debt-to-asset ratio:
Debt-to-asset ratio = (Total liabilities / Total assets) * 100%
Debt-to-asset ratio = ($6,100 / $11,500) * 100% = 52.87%
Round the debt-to-asset ratio to the nearest whole percent:
The debt-to-asset ratio is approximately 53%.
To calculate Shira's debt-to-asset ratio, we need to determine her total liabilities and her total assets, then divide the total liabilities by the total assets.
First, let's calculate Shira's total liabilities. Shira has a credit card balance of $1,300 and a car loan balance of $4,800. The total liabilities can be calculated by adding these two amounts:
Total liabilities = Credit card balance + Car loan balance
= $1,300 + $4,800
= $6,100
Next, let's calculate Shira's total assets. Shira has a savings account balance of $1,450 and stocks worth $1,050. Additionally, her car has a market value of $9,000. To calculate the total assets, we add these amounts:
Total assets = Savings account balance + Stocks value + Car market value
= $1,450 + $1,050 + $9,000
= $11,500
Now that we have calculated Shira's total liabilities ($6,100) and total assets ($11,500), we can proceed to calculate the debt-to-asset ratio:
Debt-to-asset ratio = (Total liabilities / Total assets) * 100
Debt-to-asset ratio = ($6,100 / $11,500) * 100
= 0.5304 * 100
≈ 53
Rounding to the nearest whole percent, Shira's debt-to-asset ratio is approximately 53%.