Which of the following is a characteristic of an installment loan?

There is an introductory period where no interest is accrued.

The item purchased is used as collateral until the balance is paid in full.

A down payment is always required.

It is commonly referred to as a "buy now, pay later" plan.

Question

Kassandra Wise

Business

5 June, 02:40

Which of the following is a characteristic of an installment loan?

There is an introductory period where no interest is accrued.

The item purchased is used as collateral until the balance is paid in full.

A down payment is always required.

It is commonly referred to as a "buy now, pay later" plan.

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Carlee Hurley · Answer 1

In my view this option is a perfect characteristic of an installment loan: The item purchased is used as collateral until the balance is paid in full.

Which of the following is a characteristic of an installment loan?There is an introductory period where no interest is accrued.The item purchased is used as collateral until the balance is paid in full.A down payment is always required.It is commonly referred to as a "buy now, pay later" plan.