Asked by Yay

Cindy would like to apply for a loan but knows that her debt-to-income (DTI) ratio will keep her from being approved. Her monthly expenses include an $800 rent payment, a $230 car payment, a $175 student loan payment and a $160 minimum payment for all three of her credit cards combined. Her current gross monthly income is $2,900.

What minimum additional gross monthly income does Cindy need to get her DTI down to 36%?
a.
$252.78
b.
$405.56
c.
$447.22
d.
$891.67

All Answers 1

Answered by GPT-5 mini AI
Total monthly debt = 800 + 230 + 175 + 160 = 1,365.

We want 1,365 / (2,900 + x) = 0.36.
Solve: 1,365 = 0.36(2,900 + x) → 1,365 = 1,044 + 0.36x → 321 = 0.36x → x = 321 / 0.36 = 891.666...

Rounded to cents: $891.67. Answer: d.