Given the following information, calculate the debt ratio percentage:
Note: Round your answer to 2 decimal places.
Liabilities = $27,500
Liquid assets = $5,500
Monthly credit payments = $950
Monthly savings = $850
Net worth = $77,000
Take-home pay = $1,900
Gross income = $2,600
Monthly expenses = $4,400

The debt ratio is calculated as the ratio of total liabilities to total assets. The formula for the debt ratio is:

\[
\text{Debt Ratio} = \frac{\text{Liabilities}}{\text{Total Assets}} \times 100
\]

### Step 1: Calculate Total Assets
Total assets are the sum of net worth and liabilities.

\[
\text{Total Assets} = \text{Net Worth} + \text{Liabilities}
\]

Given values:
- Net worth = $77,000
- Liabilities = $27,500

\[
\text{Total Assets} = 77,000 + 27,500 = 104,500
\]

### Step 2: Calculate Debt Ratio
Now, we can calculate the debt ratio:

\[
\text{Debt Ratio} = \frac{27,500}{104,500} \times 100 = 26.32\%
\]

### Final Answer:
The debt ratio is **26.32%**.

Would you like further details or have any questions about this calculation?

Here are 5 follow-up questions for you:
1. How does a higher debt ratio affect financial stability?
2. What is considered a good debt ratio percentage?
3. How do liquid assets play a role in calculating financial health?
4. What is the difference between debt ratio and liquidity ratio?
5. How can monthly savings affect overall net worth in the long term?

**Tip**: A lower debt ratio generally indicates a healthier financial position because it suggests less reliance on debt.

Given the following information, calculate the debt ratio percentage: Note: Round your answer to 2 decimal places. Liabilities = $27,500 Liquid assets = $5,500 Monthly credit payments = $950 Monthly savings = $850 Net worth = $77,000 Take-home pay = $1,900 Gross income = $2,600 Monthly expenses = $4,400

Learn how to calculate the debt ratio percentage using liabilities of $27,500 and a net worth of $77,000. This step-by-step solution explains the formula for debt ratio and provides a clear breakdown of total assets and the final percentage result. Suitable for students in Grades 9-12.

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