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Balloon payment vs bullet payment

02/10/2021 Client: muhammad11 Deadline: 2 Day

Pick one of the four loan repayment options listed below and briefly discuss the benefits and detriments of that option versus the others.

1. Equal Payments: Payment is constant and loan balance is gradually paid off over the term

2. Equal Principal Payments: Principal payment is constant throughout the term of the loan

3. Balloon Loan: Partial repayment of loan throughout the term of the loan

4. Bullet Loan: Interest only loan, with principal due at maturity

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