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balloon payment

From Wiktionary, the free dictionary

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English

Etymology

So called because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

Noun

balloon payment (plural balloon payments)

English Wikipedia has an article on:
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  1. (business, real estate) An unusually large payment due at the end of the term of a loan agreement.
    Synonym: lump sum

Translations

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