A loan made for a specified number of equal monthly payments is called an installment loan. It is typically used for making purchases like cars, boats, furniture, or services such as vacations or home improvements.

Question

​A loan made for a specified number of equal monthly payments is called an installment loan. It is typically used for making purchases like cars, boats, furniture, or services such as vacations or home improvements.

Quizplus · Accepted Answer

An installment loan is indeed a type of loan that is repaid over time with a set number of scheduled payments; typically at least two payments are made towards the loan. The term of the loan may be as little as a few months and as long as 30 years. This type of loan is commonly used for purchasing high-value items like cars, boats, and furniture, as well as paying for services such as vacations or home improvements.

​A Loan Made for a Specified Number of Equal Monthly

A Loan Made for a Specified Number of Equal Monthly