What Are Installment Loans?

C

The correct answer is C. Installment loan.

An installment loan is a type of loan that is repaid over a set period of time in a series of regular, fixed payments. These payments typically include both principal and interest, with the loan being fully repaid by the end of the term. Installment loans can be used for a variety of purposes, including personal loans, car loans, and student loans.

In contrast, a single payment loan (option A) is a loan that is repaid in full with a single payment at the end of the term. These types of loans are typically short-term and may be used for things like bridge financing or temporary cash flow needs.

A mortgage loan (option B) is a type of installment loan that is used specifically to finance the purchase of real estate. Mortgage loans are typically repaid over a period of 15 to 30 years, with the interest rate and payment amount remaining fixed or adjustable depending on the terms of the loan.

A college savings plan (option D) is not a type of loan at all, but rather a type of investment account designed to help families save for future college expenses. These plans typically offer tax benefits and may be sponsored by state governments or private financial institutions.

Therefore, an installment loan is the correct answer to this question.