Which one of the following terms is defined as a loan wherein the regular payments, including both interest and principal amounts, are insufficient to retire the entire loan amount, which then must be repaid in one lump sum?
A. Amortized loan.
B. Continuing loan.
C. Balloon loan.
D. Pure discount loan.
E. Interest-only loan.

(C) Ballon

Explanation:

This type of loan does not fully amortised at the end of its term. Since it is not fully amortized, hence a balloon payment is necessary at the end of the loan term to pay off the remaining initial principal balance of the loan. Balloon loans are usually attractive in short-term loans because they typically carry lower interest rates than loans with longer terms. However, the borrower must be aware of refinancing risks as there's a risk the loan might be reset at a higher interest rate which is not favorable to the borrower.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi