Which of the following is a common use of installment loans?

The choice of mortgage loans as a common use of installment loans is accurate because mortgage loans are structured as long-term installment loans that require borrowers to repay the principal and interest over a specified period, usually 15 to 30 years. This format allows homeowners to acquire property without having to pay the entire purchase price upfront. The consistent and predictable nature of monthly mortgage payments enables borrowers to budget over the long term while building equity in their homes.

In contrast, credit card purchases represent a revolving credit option rather than an installment loan, as they allow consumers to borrow up to a certain limit and pay off their balance over time, without fixed repayment schedules. Business funding can involve various financing options, including lines of credit and term loans, but it does not specifically indicate an installment structure unless outlined as such. Short-term personal expenses may often be addressed through other forms of credit, like payday loans or personal lines of credit, which do not typically follow the installment loan model.