Concept explainers
____ credit is a loan arrangement in which there is no set number of payments. (13-1)
To fill: The blanks provided for the statement, “_____ credit is a loan arrangement in which there is no set number of payments.”
Answer to Problem 1CR
Solution:
Open-end credit is a loan arrangement in which there is no set number of payments.
Explanation of Solution
Open-end credit is a loan which is preapproved.
It takes place between the financial institution and a borrower that can be used repeatedly but to a certain limit.
It is an advantage for the borrowers as they can control the money they can borrow.
It has two forms: a loan or a credit card.
Hence, the Open-end credit is a loan arrangement in which there is no set number of payments.
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Chapter 13 Solutions
Contemporary Mathematics for Business & Consumers - With LMS CengageNOW
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