The image and chart show the terms of a sample balloon payment mortgage. A loan is 200,000 dollars, has a regular payment term of 7 years, and has a fixed rate interest of 4 percent. The monthly interest rate is 0.333 percent, monthly payment is 954 dollars, the total interest paid is 52,286 dollars, total principal paid is 26,296 dollars, and the remaining payment is 173,073 dollars. According to the terms of the sample balloon payment mortgage, what will most likely occur at the end of the regular payment term? A the remaining principal of $173,073 will be due immediately
B the interest rate will change to decrease
C the monthly payment the loan’s terms have all been met and it is paid in full
D the monthly payments will increase due to an increase in principal

The answer is A