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

Question

Quizplus · Accepted Answer

The statement is false. Prepaying a 12-month installment loan at the end of 6 months would not result in half of the interest being saved. The interest would be calculated based on the remaining 6 months of the loan, and the total interest paid would depend on the terms of the loan and the interest rate.

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