In a single, end-of-period payment loan, firms ________.

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In a single, end-of-period payment loan, firms pay interest on the loan and pay back the principal in one lump sum at the end of the loan. This is because the interest accrues over the entire duration of the loan and is due along with the principal at the end of the loan period. Option A is incorrect because it suggests that no interest is paid at all, which is not the case. Option B is also incorrect because it suggests that the principal is paid back with no interest, which is not how loans typically work. Option C suggests that the principal is paid back at the beginning of the loan, which is again not how loans are typically structured.

In a Single, End-Of-Period Payment Loan, Firms ________