The advantage of a "balloon payment" loan over a conventional loan repayment plan is: A. less total interest is paid B. the size of the payments is flexible C. the payments are smaller, except for the final one D. the interest rate is flexible

The advantage of a "balloon payment" loan over a conventional loan repayment plan is: A. less total interest is paid B. the size of the payments is flexible C. the payments are smaller, except for the final one D. the interest rate is flexible

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6LO

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Liquidity Risk Exposure

Answer: c

Question

The advantage of a "balloon payment" loan over a conventional loan

repayment plan is:

A. less total interest is paid

B. the size of the payments is flexible

C. the payments are smaller, except for the final one

D. the interest rate is flexible

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