Question

scott has a credit limit of $8000 and a $1600 balance. he wants to use his credit card to make a purchase, but doesnt know if that will put him over a 30% utilization ratio. how much more could scott spend without going over 30%?

Explanation:

Step1: Find 30% of credit limit

First, calculate 30% of the credit limit (\$8000). The formula for a percentage of a number is \(\text{Percentage} \times \text{Number}\), so \(0.30 \times 8000 = 2400\). This is the maximum balance he can have without exceeding 30% utilization.

Step2: Calculate allowable additional spend

He currently has a balance of \$1600. Let \(x\) be the additional amount he can spend. Then, \(1600 + x = 2400\). Solving for \(x\), we subtract 1600 from both sides: \(x = 2400 - 1600 = 800\).

Answer:

\$800