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Ralph is thinking of switching jobs. He want to make sure that his new salary maintains a debt-to-income (DTI) ratio of at most 36%. His DTI ratio is currently 29% with a gross monthly income of $3,700. What minimum gross monthly income will Ralph need to maintain a DTI ratio of 36%?

a.

$1,073.00

b.

$1,332.00

c.

$2,980.56

d.

$3,862.80

Verified Answer :

taskmasters

First, solve for Ralph's debt by using his current gross income and DTI ratio.
                                              0.29 = D/3,700
                                                      D = 1,073
Then, solve for the current gross income given that new DTI ratio is 36%.
                                           0.36 = 1,073 / gross income
The value of gross income should be $2,980.56. Thus, the answer is letter C.

emmadennison

Answer:

c

Step-by-step explanation:

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