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Assoli18 [71]
3 years ago
11

The table shows the terms of a fixed-rate mortgage.

Social Studies
2 answers:
gtnhenbr [62]3 years ago
6 0

The following statements describe accurately the terms of this mortgage:

-"The monthly interest rate is 4 percent". This means that each month, the owner will have to pay the normal fee plus 4% of it.

-"Monthly payments must be for 30 years". This means that the owner will have to make a payment every month for 30 years in order to pay their debt.

-"The homeowner is borrowing $200.000". This is the amount of money the homeowner is borrowing from the bank or company, which they will pay by making monthly payments for 30 years.

The other three statements do not describe the terms of the mortgage as they misunderstand the details.

-Payments must be made for 30 years, with 12 months each year, it makes it 360 payments in total. Not monthly payments for 360 years and the homeowner is not borrowing $360.000 either.

-The annual interest rate is not 4.8% . The correct way to find this value is by taking into account days and months, which would make it be around 60%.





larisa86 [58]3 years ago
6 0

Its 3, 4, and 5!!! I just took the test!!!

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