Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'partial amortization'?

A. event reflecting the actual payment of some amount of the principal of a debt
B. amortization in which the payments made do not cover the interest due
C. amortization in which the very last payment (which, if the schedule was calculated correctly, should be equal to all others) pays off all remaining principal and interest on the loan
D. amortization in which the very last payment the last payment due may be a large balloon payment of all remaining principal and interest

Answer: amortization in which the very last payment the last payment due may be a large balloon payment of all remaining principal and interest