Question

A purchaser borrows $275,000 to purchase a property for a term of ten years. At the end of that time, $100,000 of the loan will have been paid off and the borrower will have to make a final payment of $175,000. What is the payment called?

Answer 1

The payment at the end of the term is called the final balloon payment.

Step-by-step explanation:

The payment called at the end of the term is typically referred to as the final balloon payment. In this case, the borrower will make a final payment of $175,000, which represents the remaining balance of the loan after $100,000 has already been paid off.