Question

This type of credit is described as a specific amount of money that typically includes

interest charges. It is repaid in equal monthly payments for a specific number of months.
What type of credit is this?
O Installment
O Revolving
Service
O ALL OF THESE ARE CORRECT

Answer 1

Installment

Step-by-step explanation:

In installment credit, the borrower makes periodic, fixed, and scheduled loan repayments. The loan has a set timeline by which it ought to be fully repaid. The periodic repayments( installments) are mostly monthly. The installment amount is predetermined and includes the principal amount and an interest component.

Every installment payment reduces the loan balance. The borrower continues making payments until the entire loan is repaid. Installment contrasts with revolving loan type. Under the revolving loan, the lender sets a loan limit for the borrower. The borrower can borrow as many times as long as they are below the set limit.