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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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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