Question

wyatt has a credit limit of $12500 and has a balance of $7700. he wants to pay off some of his debt to get his utilization ratio to 28%. how much money should he pay on his debt?

Explanation:

Step1: Understand Utilization Ratio

The credit utilization ratio is calculated as $\frac{\text{Balance}}{\text{Credit Limit}} \times 100\%$. We want the new ratio to be 28%, so first find the new balance allowed. Let the new balance be $B$. Then $\frac{B}{12500} = 0.28$. Solving for $B$: $B = 12500 \times 0.28 = 3500$.

Step2: Find Payment Amount

Current balance is $7700$, new balance should be $3500$. So the payment amount $P$ is $7700 - 3500 = 4200$.

Answer:

Wyatt should pay $4200$ on his debt.