To determine which person has the lowest credit utilization ratio, let's follow these steps:
1. Understand the Problem:
We have four individuals, each with a certain number of credit cards and a certain balance. The credit utilization ratio is calculated as:
[tex]\[
\text{Credit Utilization Ratio} = \frac{\text{Total Balance}}{\text{Total Credit Limit}}
\][/tex]
2. Establish the Credit Limit per Card:
Each credit card has a [tex]$1000 credit limit.
3. Calculate the Total Credit Limit and Utilization Ratio for Each Person:
- Tatiana:
- Number of cards: 10
- Total balance: $[/tex]500
- Total credit limit: [tex]\( 10 \times 1000 = 10000 \)[/tex]
- Utilization ratio: [tex]\( \frac{500}{10000} = 0.05 \)[/tex]
- Debra:
- Number of cards: 1
- Total balance: [tex]$100
- Total credit limit: \( 1 \times 1000 = 1000 \)
- Utilization ratio: \( \frac{100}{1000} = 0.10 \)
- Priyanka:
- Number of cards: 10
- Total balance: \( 10 \times 1000 = 10000 \)
- Total credit limit: \( 10 \times 1000 = 10000 \)
- Utilization ratio: \( \frac{10000}{10000} = 1.00 \)
- Harriett:
- Number of cards: 1
- Total balance: $[/tex]1000
- Total credit limit: [tex]\( 1 \times 1000 = 1000 \)[/tex]
- Utilization ratio: [tex]\( \frac{1000}{1000} = 1.00 \)[/tex]
4. Compare the Utilization Ratios:
- Tatiana: 0.05
- Debra: 0.10
- Priyanka: 1.00
- Harriett: 1.00
5. Determine the Lowest Utilization Ratio:
Among the given individuals, Tatiana has the lowest credit utilization ratio at 0.05.
Conclusion:
The person with the lowest credit utilization ratio is Tatiana with a ratio of 0.05.
