A country has a total debt of $500 million and its foreign debt is $300 million.

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Question: A country has a total debt of $500 million and its foreign debt is $300 million. What is the ratio of foreign debt to total debt?

Options:

Correct Answer: 0.6

Solution:

Ratio of foreign debt to total debt = Foreign debt / Total debt = $300 million / $500 million = 0.6.

A country has a total debt of $500 million and its foreign debt is $300 million. What is the ratio of foreign debt to total debt?

A country has a total debt of $500 million and its foreign debt is $300 million. What is the ratio of foreign debt to total debt?

Step 1: Identify the total debt amount, which is $500 million.
Step 2: Identify the foreign debt amount, which is $300 million.
Step 3: Write the formula for the ratio of foreign debt to total debt: Ratio = Foreign debt / Total debt.
Step 4: Substitute the values into the formula: Ratio = $300 million / $500 million.
Step 5: Perform the division: $300 million divided by $500 million equals 0.6.
Step 6: Conclude that the ratio of foreign debt to total debt is 0.6.

Debt Ratios – Understanding how to calculate ratios, specifically the ratio of foreign debt to total debt.