A borrower with a balloon note can expect to pay a large payment to the lender as the last and final payment.

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A borrower with a balloon note can expect to pay a large payment to the lender as the last and final payment.

A. True
B. False

Answer: A.True

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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