Ralph just received a loan from his local bank, where he must make periodic payments that include accrued interest and part of the outstanding principal balance. Ralph's loan is known as a/an ______.

Question

Quizplus · Accepted Answer

Ralph's loan is an installment loan because it requires periodic payments that include both the accrued interest and a portion of the principal balance. This is characteristic of installment loans, where the borrower repays the loan amount plus interest through a series of scheduled payments.

Ralph Just Received a Loan from His Local Bank, Where