Pete and Pam Want to Purchase a New Home but Don't

question 45

Multiple Choice

Pete and Pam want to purchase a new home but don't know how much mortgage they can qualify for.The lender requires total installment loan payments not exceed 32% of gross monthly income.Based on Pete and Pam's financial data below,what is the maximum monthly mortgage payment for which they can qualify?

• A) $1,700
• B) $1,600
• C) $ 900
• D) $ 600
• E) $ 500

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Definitions:

Mental Speed

The rapidity with which an individual can process information, make decisions, and solve problems.

IQ Scores

Quantitative measures of intelligence, often based on standardized tests, designed to assess human cognitive abilities in relation to an age group.

Raven's Progressive Matrices

A nonverbal group test typically used to measure abstract reasoning and is regarded as a test of general intelligence.

Glucose Metabolism

The series of biochemical processes that involve the breakdown, synthesis, and transformation of glucose in the body, vital for producing energy.