A loan agreement requires that the firm pay interest on the loan and pay back the principal in one lump sum at the end of the loan is called:

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A loan agreement that requires the borrower to pay interest on the loan and repay the principal in one lump sum at the end of the loan period is commonly known as a single, end-of-period-payment loan. This type of loan is often used for short-term financing needs, such as purchasing inventory or equipment, or for a specific project.

A Loan Agreement Requires That the Firm Pay Interest on the Loan