Question

question 4 which person has the lowest credit utilization ratio? amy: $6000 credit limit and $3300 balance. lacey: $12000 credit limit and $5400 balance. john: $8000 credit limit and $3200 balance. kevin: $10000 credit limit and $5600 balance.

Explanation:

Step1: Recall Credit Utilization Formula

Credit utilization ratio is calculated as $\text{Ratio} = \frac{\text{Balance}}{\text{Credit Limit}} \times 100\%$. We need to calculate this for each person.

Step2: Calculate Amy's Ratio

Amy: Balance = $3300$, Limit = $6000$.
$\text{Ratio}_\text{Amy} = \frac{3300}{6000} \times 100\% = 55\%$.

Step3: Calculate Lacey's Ratio

Lacey: Balance = $5400$, Limit = $12000$.
$\text{Ratio}_\text{Lacey} = \frac{5400}{12000} \times 100\% = 45\%$.

Step4: Calculate John's Ratio

John: Balance = $3200$, Limit = $8000$.
$\text{Ratio}_\text{John} = \frac{3200}{8000} \times 100\% = 40\%$.

Step5: Calculate Kevin's Ratio

Kevin: Balance = $5600$, Limit = $10000$.
$\text{Ratio}_\text{Kevin} = \frac{5600}{10000} \times 100\% = 56\%$.

Step6: Compare Ratios

Compare $55\%$ (Amy), $45\%$ (Lacey), $40\%$ (John), $56\%$ (Kevin). The lowest is $40\%$ (John).

Answer:

John. $8000$ credit limit and $3200$ balance.