6
QuizMultiple Choice

Applying for a Loan

Question 6 • 2025-2026 GSP Mathematical Reasoning for Decision Making

Kurtis is expecting a promotion which, hopefully, comes with a raise. He would like his raise to help him correct a high debt-to-income (DTI) ratio of 43%. His current annual salary is $53,000. How much of a raise would Kurtis need applied to his annual salary to get his DTI ratio down to a more reasonable 36%?

Answer
A
$4,437
B
$8,627
C
$10,305
D
$63,305

Explanation

DTI is monthly debt payments divided by income. If Kurtis’s debt payments stay the same, the income needed for a 36% DTI is $53,000 × 43% ÷ 36% ≈ $63,305. Subtract his current salary: $63,305 − $53,000 ≈ $10,305, so he needs a raise of about $10,305. The $63,305 figure is his target annual salary, not the raise.

AI-written and checked against the verified answer.

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