Match the mortgage types with their descriptions. It requires the
buyer to make
a 20% down
payment
A large portion
of principal is
paid in a
single
payment at
the end of
the loan
It has the
same interest
rate for the
life span of
the loan.
It initially has
a fixed rate
for three to
It requires a
lower down
payment
and allows
buyers to
have a lower
credit score.
five years
and then
adjusts at a
predetermined
time.
It starts with
a low interest
rate and then
adjusts
throughout
the duration
of the loan.
conventional
balloon
fixed-rate
adjustable-rate
hybrid
government-
Insured

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step-by-step explanation:

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.