The table shows the terms of a fixed-rate mortgage. Component
Cost
(P) Principal
$200 000
Which accurately describes the terms of this mortgage?
Check all that apply.
The homeowner is borrowing $360,000.
The monthly interest rate is 4 percent.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
.4%
(R) Monthly interest rate
(n) Total number of
monthly payments (30-
year term)
360
(M) Monthly payment
Monthly payments must be made for 360 years.
My