What is true about the payments with closed-end credit?

a. They increase over time.

b. The decrease over time.

c. They remain the same until the credit is paid off.

d. They vary from month to month.

Question

Dario Mosley

Business

29 January, 22:23

What is true about the payments with closed-end credit?

a. They increase over time.

b. The decrease over time.

c. They remain the same until the credit is paid off.

d. They vary from month to month.

+2

Answers (1)

Know the Answer?

Jayson Huffman · Answer 1

C) They remain the same until the credit is paid off.

Explanation:

In a closed-end credit, borrower and lender agree on principal amount, interest rate and monthly payments. These features stay the same over time.

The most common types of closed-end credit are mortgages and car loans.

For example, if a person wants to buy a car on credit, they agree to pay a monthly amount, that includes both interest and principal payments, until the full amount is paid off in a specified date in the future. After the last payment, the right to ownership of the car is transferred from the borrower to the lender, closing the credit.

What is true about the payments with closed-end credit?a. They increase over time.b. The decrease over time.c. They remain the same until the credit is paid off.d. They vary from month to month.

What is true about the payments with closed-end credit?

a. They increase over time.

b. The decrease over time.

c. They remain the same until the credit is paid off.

d. They vary from month to month.