The statement in an installment note, a portion of each installment payment goes towards interest, and the remaining portion represents a reduction of the outstanding loan balance is True.
An installment note can be defined as the note that inform a borrower to pay the principal amount and interest amount loan to them with in a stipulated period of time.
This installment note help to act as a form of lending agreement between the lender and the borrower as the installment note is often issued to the borrower by the lender.
In a installment note some part of the installment goes to the interest while remaining is the decrease in the outstanding loan balance.
Therefore the statement is true.
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