--%>

Balloon payment

The final payment in a partially amortized loan. The balloon payment repay the entire remaining principal and is usually larger than previous payments on the loan. Loan that is set up with balloon payments allow the borrower to make the purchase and have a lower payment than if the loan were fully amortized. The borrower will be refinance the remaining loan rather than pay the balloon payment.

 

   Related Questions in Managerial Accounting

  • Q : Regions of decision making process What

    What are the possible broad regions of decision making process where management accounting information is required?

  • Q : Explain Full-Absorption Costing

    Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

  • Q : Significance of partnership deed Why is

    Why is it significant to encompass a partnership deed in writing? Answer: Partnership deed is significant as it is a document stating relationship of each and every

  • Q : What do you mean by the term Mission

    What do you mean by the term Mission statements? Briefly describe it.

  • Q : Selecting strategic options and

    Write a short note on selecting strategic options and formulating the plans?

  • Q : Define Responsibility Center

    Responsibility Center: It is an organizational unit headed by the manager or a group of managers who are responsible for its actions. The responsibility centers can be measured as revenue centers (that is responsible for revenue or sa

  • Q : Industry and your accounting place How

    How have you observed the regulations which affect both your industry and your accounting place?

  • Q : Relationship between risk and return

    Write a short note on the relationship between risk and return?

  • Q : Explain Operating Budgets Operating

    Operating Budgets: It is a financial document which aids a business in making significant decisions regarding its actions. An operating budget does not contain instant impact on the actual state of the business and exhibits only future projections. Bu

  • Q : Bank reconciliation statement Explain

    Explain the term bank reconciliation statement?