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:

Applied Psychology

The use of psychological principles and theories to solve real-world problems, including in areas such as health, education, and business.

Functionalism

A theory in social sciences that emphasizes the functional role of elements within a structure, examining how they contribute to the coherence and stability of a system.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud.

Freud's Views

The perspectives and theories developed by Sigmund Freud concerning the unconscious mind, psychosexual development, and the structure of personality.