Barb and Bob Want to Purchase a New Home but Don't

question 32

Multiple Choice

Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for. The lender requires that the total installment of loan payments does not exceed 35% of the monthly income. Based on Barb and Bob's financial data given below, what is the maximum monthly mortgage payment for which they can qualify?

• A) $1,400
• B) $1,208
• C) $1,502
• D) $850
• E) $500

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Definitions:

Lower South

The Lower South refers to the southernmost states of the Confederacy during the American Civil War, including South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, and Texas, known for their deep reliance on agriculture and slavery.

Slave Revolts

Uprisings and rebellions carried out by enslaved people against their conditions and overseers, aiming for freedom or retaliation against oppression.

West Indies

A region in the Caribbean Sea consisting of many islands divided into three main island groups: the Bahamas, the Greater Antilles, and the Lesser Antilles.

Brazil

The largest country in South America, known for its diverse culture, rainforests, and as the host of the world-famous Carnival festival.