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

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.