Tammy Payne wants to buy a used car and wants a loan that she will pay off over the next three years with monthly payments.Which of the following categories will this loan fall into?

Question

Quizplus · Accepted Answer

An installment loan is a loan that is repaid in regular monthly payments, typically over a period of time. This type of loan is commonly used to finance larger purchases, such as a car or home, and is often preferred by borrowers because it allows for predictable monthly payments and a set repayment schedule. Therefore, Tammy Payne's loan to buy a used car and repay it over three years with monthly payments is an example of an installment loan.

Tammy Payne Wants to Buy a Used Car and Wants