Question

Debra, age 28, earns $4740 per month. Every month she saves $410. Additionally, she has $2520 in outstanding credit cards and makes a $210 monthly payment of these cards. What is Debra’s approximate savings ratio? (Round answers to 2 decimal places, e.g. 52.75.)

Answer 1

8.65%

Explanation:

We have been given that Debra earns $4740 per month. Every month she saves $410. Additionally, she has $2520 in outstanding credit cards and makes a $210 monthly payment of these cards.

`\text{Savings ratio}=\frac{\text{Savings}}{\text{Income}}* 100\%`

Upon substituting our given values in above formula, we will get:

`\text{Savings ratio}=(410)/(4740)* 100\%`

`\text{Savings ratio}=0.08649789* 100\%`

`\text{Savings ratio}=8.649789\%`

`\text{Savings ratio}\approx 8.65\%`

Therefore, Debra's approximate savings ratio is 8.65%.