Finance
A loan that requires only interest payments during the loan term with the entire principal due at maturity is called a:
AFully amortized loan
BPartially amortized loan
CStraight note (term loan)✓ Correct
DReverse annuity mortgage
Explanation
A straight note (also called a term loan or interest-only loan) requires the borrower to pay only interest during the loan term, with the full principal balance (balloon payment) due at maturity.
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