Question

Finance charges on installment accounts are often higher than those on i revolving accounts.

true of false"

Answer 1

Finance charges on installment accounts are often higher than those on revolving accounts.

Step-by-step explanation:

True. Finance charges on installment accounts are often higher than those on revolving accounts. When a borrower takes out an installment loan, they are required to make fixed monthly payments over a specific period of time. The interest rate for installment accounts is typically higher because the lender takes on more risk with a set repayment schedule. On the other hand, revolving accounts like credit cards have variable interest rates and no fixed repayment schedule, so the finance charges tend to be lower.