the table shows the terms of a fixed - rate mortgage. which accurately describes the terms of this mortgage…

the table shows the terms of a fixed - rate mortgage. which accurately describes the terms of this mortgage? check all that apply.\ncomponent cost\n(p) principal $200,000\n(r) monthly interest rate 4%\n(n) total number of monthly payments (30 - year term) 360\n(m) monthly payment \nthe homeowner is borrowing $360,000.\nthe monthly interest rate is 4 percent.\nmonthly payments must be made for 30 years.\nthe annual interest rate is 4.8 percent.\nthe homeowner is borrowing $200,000.\nmonthly payments must be made for 360 years.

the table shows the terms of a fixed - rate mortgage. which accurately describes the terms of this mortgage? check all that apply.\ncomponent cost\n(p) principal $200,000\n(r) monthly interest rate 4%\n(n) total number of monthly payments (30 - year term) 360\n(m) monthly payment \nthe homeowner is borrowing $360,000.\nthe monthly interest rate is 4 percent.\nmonthly payments must be made for 30 years.\nthe annual interest rate is 4.8 percent.\nthe homeowner is borrowing $200,000.\nmonthly payments must be made for 360 years.

Answer

Explanation:

Step1: Analyze principal amount

The principal (P) in the table is $200,000, so the homeowner is borrowing $200,000.

Step2: Analyze monthly - interest rate

The monthly interest rate (R) is 0.4%, not 4%.

Step3: Analyze number of payments

The total number of monthly payments (n) is 360, which means payments are made for 30 years (since 360/12 = 30).

Step4: Analyze annual interest rate

If the monthly interest rate is 0.4%, the annual interest rate is 0.4%×12 = 4.8%.

Answer:

  • The homeowner is borrowing $200,000.
  • Monthly payments must be made for 30 years.
  • The annual interest rate is 4.8 percent.