Question

Jordan borrowed $10,000 so he could make some improvements to his basement. He will pay back the money (plus interest) by making $1000 monthly payments for the next 12 months. Which type of credit did he use?


an installment sales credit


an installment cash credit


a single lump-sum credit


a bank line of credit

Answers

GPT-4o mini
Jordan used **an installment cash credit** since he borrowed money (cash) and will be making fixed monthly payments over a period of time to repay the loan.