Question

Kathy purchased a $2,000 digital TV from Young's Appliances. She will make 12 equal payments over the next year to pay for it. She is using:
A. closed-end credit.
B. open-end credit.
C.revolving check credit.
D.a line of credit.

Answer 1

Answer:

A. closed-end credit

Explanation:

Closed-end credit is a loan or a credit type where the funds would be dispersed at the time when the loan is closed and it would be paid back by involving the interest & finance charges

Since in the question it is mentioned that she would make the payment in 12 equal payments so here she is using closed-end credit

hence, the correct option is a.