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

Answers

Answer 1

Answer:

Its 3, 4, and 5

Explanation:

Answer 2

The accurate statements that describe the terms of this mortgage are:

The monthly interest rate is 4 per cent.Monthly payments must be made for 30 years.The homeowner is borrowing $200,000.

Therefore, option B, C, and E are correct.

What is a fixed-rate mortgage?

A mortgage loan with a fixed interest rate is one in which the interest rate on the note does not change during the loan. A home loan option known as a fixed-rate mortgage has an agreed-upon interest rate for the duration of the loan.

The details of this mortgage are accurately described by the following statements:

The interest rate for the month is 4%. This implies that the owner must pay the regular price plus an additional 4% monthly.

"Monthly payments must last 30 years," it states. To pay off the loan, the owner will have to make a payment each month for 30 years.

The homeowner is taking out a $200.000 loan. This is the sum the homeowner will borrow from the bank or business and repay over 30 years through monthly installments.

The other three assertions are inaccurate since they do not accurately represent the mortgage's terms.

There must be 360 payments made throughout the required 30 years (12 months every year). Neither is the homeowner making 360 years' worth of payments, nor are they borrowing $360,000.

Not 4.8% is the annual interest rate. By accounting for days and months, the proper technique to calculate this value would result in a result of about 60%.

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Explanation:

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Answer:

Explanation:

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Answers

Answer:

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