Given the following information, calculate the debt ratio percentage:

**Note: Round your answer to 2 decimal places.**

Liabilities = $32,500

Liquid assets = $6,500

Monthly credit payments = $1,200

Monthly savings = $1,000

Net worth = $84,500

Take-home pay = $2,400

Gross income = $3,100

Monthly expenses = $5,900

The debt ratio is calculated by dividing total liabilities by total assets. To find the total assets, we use the formula:

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

Given the values:

- Liabilities = $32,500
- Net Worth = $84,500

First, calculate the total assets:

\[
\text{Total Assets} = 84,500 + 32,500 = 117,000
\]

Now, calculate the debt ratio:

\[
\text{Debt Ratio} = \frac{\text{Liabilities}}{\text{Total Assets}} = \frac{32,500}{117,000}
\]

\[
\text{Debt Ratio} \approx 0.2778
\]

Convert this to a percentage by multiplying by 100:

\[
\text{Debt Ratio Percentage} \approx 27.78\%
\]

So, the debt ratio percentage is **27.78%**.

Would you like more details or have any questions?

Here are 5 related questions to expand on the topic:

1. How would an increase in liabilities affect the debt ratio?
2. What other financial ratios could be useful to assess financial health?
3. How is the debt-to-income ratio different from the debt ratio?
4. Why is it important to consider both liquid assets and liabilities when calculating financial ratios?
5. What are some strategies to lower a high debt ratio?

**Tip:** Regularly monitoring your debt ratio can help you maintain a healthy financial balance and avoid excessive debt.

Given the following information, calculate the debt ratio percentage: Liabilities = $32,500, Liquid assets = $6,500, Monthly credit payments = $1,200, Monthly savings = $1,000, Net worth = $84,500, Take-home pay = $2,400, Gross income = $3,100, Monthly expenses = $5,900. Note: Round your answer to 2 decimal places.

Learn how to calculate the debt ratio percentage using given liabilities and net worth. This financial math problem involves calculating total assets and applying the debt ratio formula. Suitable for students in Grades 10-12.

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