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Which of the following descibes a partially amortized loan? Although regular payments pay the interest and reduce the principal over the loan term a final
Which of the following descibes a partially amortized loan?
Although regular payments pay the interest and reduce the principal over the loan term a final balloon payment is required to retire the loan.
At muturity all interest has been paid and the loan balance is zero.
The monthly mortgage payments increases over the loan term.
Only interest payments are made before maturity. The final balloon payment consists of the entire principal plus any unpaid interest to date.
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