Question

for every dollar of revenue the government takes in, it pays 5 cents in interest on its debtwhat is the ratio of debt interest to total revenue a. 1:4b. 1:5c. 1:10d. 1:20

Answer 1

Answer;

D. 1:20

Explanation

According to the question, we are given the following

Total revenue = 1 dollars

Debt interest = 5cents

Ratio of debt interest to total revenue = 5cents : 1 dollar

Since 1 dollar = 100cents

ratio of debt interest to total revenue = 5cents : 100cents

ratio of debt interest to total revenue = 5/100 = 1/20

Hence the ratio of debt interest to total revenue is 1:20