A balloon payment is

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A balloon payment refers to a large lump-sum payment that is made at the maturity of a debt. This payment is usually much larger than the regular payments made throughout the life of the debt. Balloon payments are commonly used in loans with a longer-term like mortgages or car loans where the borrower is expected to make regular payments for a certain period of time, with the final payment being a much larger amount that pays off the remaining balance. Option A is incorrect because it is not related to financial payments. Option B is incorrect because it refers to a different type of payment structure. Option D is incorrect because C is the correct answer.

A Balloon Payment Is