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Assume the following:
Assets = $110,000
Liabilities = $87,500
Net Worth = $35,000
Monthly credit payments = $1,640
Take home pay = $8,200
What is the debt ratio and debt payments ratio for this individual?
Debt ratio = 2.5
Debt payments ratio = .20
Debt ratio = 2.0
Debt ratio = .15
Debt payments ratio = 5.0
Debt payments ratio = 40
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