Answer: The homeowner is borrowing $200,000 and must make monthly payments for a 30-year term.
Supporting Subsection 1: Principal
The first row of the table is labeled “P” for Principal, with the cost in the second column being $200,000. This means the homeowner is borrowing a total of $200,000 for the mortgage.
Supporting Subsection 2: Monthly Interest Rate
The second row of the table is labeled “R” for the monthly interest rate, with the cost in the second column being 0.4 percent. This means the homeowner’s monthly interest rate is 0.4 percent.
Supporting Subsection 3: Total Number of Monthly Payments
The third row of the table is labeled “n” for the total number of monthly payments, with the cost in the second column being 360. This means the homeowner must make monthly payments for a total of 360 months, or 30 years.
Supporting Subsection 4: Monthly Payment
The fourth row of the table is labeled “M” for the monthly payment. This row does not have a cost listed in the second column, meaning the amount of the monthly payment is not specified in the table.
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