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

Credit limit is $8000. 30% of 8000 is calculated as $0.30\times8000 = 2400$.

Step2: Subtract current balance

Current balance is $1600. So the amount he can spend more is $2400 - 1600 = 800$.

Answer:

$800$