Answer :
To determine the largest balance you should carry on your credit card while maintaining an acceptable debt ratio, we need to use the given credit limit and the specified acceptable debt ratio.
First, we identify the credit card limit, which is [tex]$5,000. Next, we note that the acceptable debt ratio is 43%. The debt ratio tells us the percentage of the total credit limit that should not be exceeded. Therefore, to find the largest balance you can carry, we calculate 43% of the $[/tex]5,000 credit limit.
To perform this calculation, we multiply the credit limit by the debt ratio:
[tex]\[ 5000 \times 0.43 = 2150 \][/tex]
Thus, the largest balance you should carry on your credit card, to maintain an acceptable debt ratio of 43%, is $2,150.
This ensures that your credit usage remains within the recommended limits, which can positively impact your credit score and financial health.
First, we identify the credit card limit, which is [tex]$5,000. Next, we note that the acceptable debt ratio is 43%. The debt ratio tells us the percentage of the total credit limit that should not be exceeded. Therefore, to find the largest balance you can carry, we calculate 43% of the $[/tex]5,000 credit limit.
To perform this calculation, we multiply the credit limit by the debt ratio:
[tex]\[ 5000 \times 0.43 = 2150 \][/tex]
Thus, the largest balance you should carry on your credit card, to maintain an acceptable debt ratio of 43%, is $2,150.
This ensures that your credit usage remains within the recommended limits, which can positively impact your credit score and financial health.
