Jessie just bought an SUV and financed it with an automobile loan.She will pay 48 monthly payments of $425 each and one final payment of $3,000.What type of clause is in her sales contract?

Question

Quizplus · Accepted Answer

The final payment of $3,000 indicates that Jessie has a balloon clause in her sales contract. This means that she will make smaller monthly payments but will be required to make a larger final payment at the end of the loan term.

Jessie Just Bought an SUV and Financed It with an Automobile