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so there are four main types of loan the loan payment loan interest on the loan constant amortisation long constant payment loan so the last one is the most common one and I will explain it in the following videos I'm in this video I'm going to explain the first two types balloon payment loan in this type of loan the borrower receives the loan takes the loan at the present time at year 0 and has to repay the loan in the end of the a grid period the the borrower has to pay the principal and the interest for the loan in the end of the period so there is no installment there is no monthly or annual or per period payments the borrower takes the loan at the present time and repays the entire loan with interest in the end of the period so for example if the borrower is going to take a loan of $1,000 at present time with 8% let's say for 4 years then the borrower doesn't need to pay anything at year 1 2 3 but the borrower has to pay the entire loan with interest the principal and interest in

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