In a(n)____ arrangement,the borrower may end up making payment to cover not only the loan amortization,but also interest on deferred interest from an earlier period.

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In a graduated payment mortgage, the payments start lower and gradually increase over time. This type of arrangement may include deferred interest from an earlier period, which means the borrower may end up paying interest on a higher balance, increasing the total amount paid over the life of the loan. Therefore, the borrower may end up making payments to cover not only the loan amortization but also interest on deferred interest from an earlier period. The other options (B and C) do not necessarily involve deferred interest from an earlier period.

In A(n)____ Arrangement,the Borrower May End Up Making Payment to Cover