Balloon payment loans are amortized loans with low payments initially, typically comprised of mostly or all interest. The remaining principal must be paid off at the end of the loan period in a "balloon" payment. Because the small, periodic payments over the life of the loan are usually mostly interest, balloon loans result in less interest being paid over the total life of the loan. True False QUESTION 4 10 When a line of credit is established: O a. Equal periodic payments of principal and interest are required each repayment period. b. Periodic principal and interest payments are required, with equal principal repayments made each period. oc. All principal plus interest is repaid in one lump sum payment at the due date. O d. Accumulated interest is paid first, then remaining funds are applied to principal