If a 12-month installment loan is prepaid at the end of 6 months,less than one half of the interest would be saved.

Name: If a 12-month installment loan is prepaid at the end of 6 months,less than one half of the interest would be saved.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

Interest on installment loans is typically front-loaded, meaning more interest is paid in the early months, so prepaying halfway through saves less than half of the total interest.

If a 12-Month Installment Loan Is Prepaid at the End