Payments on an installment note include the accrued interest expense plus a portion of the amount borrowed. Question 5 options: True False

The statement is: True.

Explanation:

Installment payments are those paid on a regular basis as part of the terms of a loan. A debtor requires a loan to the creditor who after an evaluation determines if the debtor is approved or not. If approved, the debtor commits to make regular installments that partly cover the principal of the loan and the interest rate inherent of the amount borrowed.