Bookmarks Window Help Bags & Gym Bags | adidas Canada e home Dashboard Help 1 ut of M 401 (LEC 800 Fall 2023) Bonus activity 2 - Balloon Payment (Due November 24, midnight) Bonus activity 2 - Balloon Payment (Due November 24, midnight) #3 3 E A balloon payment is a loan where you pay small amounts of the loan first and then, at the end of the loan, you pay a BIG portion of the acquired debt to liquidate it. Many times, in this type of loan, you pay the interest of the loan first and then, in the last installment, you pay the last part of the interest and the principal. You are contemplating the purchase of a company that has a $920,000 "balloon payment" on a 4-year remaining loan with 6.9% loan rate (i.e., paying only the interest years 1-3 and the last portion of the interest and the principal in Year 4). As part of your plan to purchase. this company, you are contemplating paying off the loan today. =$ You have secured a long-term debt with longer repayment provisions at a lower interest rate of 5.8%, th