A balloon payment is one that A) is paid at the outset of a loan.

A balloon payment is one that

A)

is paid at the outset of a loan.
B)

is usually the last installment payment and generally for an amount much greater than the other monthly payments.
C)

includes all interest on the loan paid in advance.
D)

is a “floating” payment, meaning the lender can demand its payment at any time.

ANSWER

B