Question

Maura had to get $350 emergency loan at a very high interest rate to pay for dental work. The the lender did not need her credit history. If she does not pay back the loan within 3 weeks , she will have to pay an extra 50. Raina says the loan is an example of easy access credit hold Maura says it is an example of open end credit . Which statement about the loan is correct
A: Raina is correct because the loan is a line of credit
B: Maura is correct because the loan has an interest rate
C: Raina is correct because the loan has a large fee if it is not repaid on time
D: Maura is correct because the loan does not have an annual fee

Answer 1

I'd say Raina is correct, because loans are indeed easy acess, but you'll have to pay it back in certain period of time, otherwise fees can increase a lot.

Answer:

$\boxed{\bf~C.~is~correct.}$

Hope it helped,

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