Bao and Mary Jane Lee have a yearly income of ​$84 comma 256 and own a house worth ​$115 comma 900​, two cars worth a total of $ 25 comma 738 and furniture worth ​$15 comma 238. The house has a mortgage of ​$73 comma 883​, and they have a car loan with an outstanding  balance of ​$5 comma 866. Utility​ bills, totaling ​$172 for this​ month, have not been paid. Calculate the debt ratio for the Lee household.

The **debt ratio** is calculated by dividing total liabilities (debts) by total assets and then expressing this as a percentage.

Let's break this down:

### 1. **Total Liabilities**:
- Mortgage on the house: $73,883
- Outstanding car loan: $5,866
- Unpaid utility bills: $172

\[
\text{Total Liabilities} = 73,883 + 5,866 + 172 = 79,921
\]

### 2. **Total Assets**:
- House value: $115,900
- Cars value: $25,738
- Furniture value: $15,238

\[
\text{Total Assets} = 115,900 + 25,738 + 15,238 = 156,876
\]

### 3. **Debt Ratio**:

\[
\text{Debt Ratio} = \frac{\text{Total Liabilities}}{\text{Total Assets}} = \frac{79,921}{156,876} \approx 0.5095
\]

To express it as a percentage:

\[
\text{Debt Ratio Percentage} = 0.5095 \times 100 \approx 50.95\%
\]

### Conclusion:
The debt ratio for the Lee household is approximately **50.95%**.

Would you like further details on how this impacts their financial health?

### Relative Questions:
1. What does a high or low debt ratio imply for a household's financial stability?
2. How might the Lee household reduce their debt ratio?
3. What role does income play in determining a household's ability to manage debt?
4. Could refinancing their mortgage help the Lee household reduce their liabilities?
5. What is the significance of including unpaid utility bills in calculating total liabilities?

### Tip:
A debt ratio above 40% is generally considered risky in personal finance, as it indicates a high level of debt compared to assets.

Bao and Mary Jane Lee have a yearly income of ​$84,256 and own a house worth ​$115,900​, two cars worth a total of $25,738, and furniture worth ​$15,238. The house has a mortgage of ​$73,883​, and they have a car loan with an outstanding balance of ​$5,866. Utility​ bills, totaling ​$172 for this​ month, have not been paid. Calculate the debt ratio for the Lee household.

Calculate the debt ratio for Bao and Mary Jane Lee, with a yearly income of $84,256. They own assets worth $156,876 and have liabilities totaling $79,921. Learn how the debt ratio formula helps assess financial stability, providing a result of approximately 50.95%. Suitable for high school students learning about personal finance.

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