an example of open-end credit is a(n) ____

A ____ of credit is an example of an open-end credit. D installment loan from a furniture store.

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The use of a bank credit card to make a purchase.

. Approximate market value of your home. Example problem for how much you can borrow using a Home Equity Loan. Both the interest and service charge are finance charges.

E installment loan for purchasing a major appliance. Like a traditional mortgage loan it gives the borrower enough cash to purchase a home. View the full answer.

B the mortgage loan from a savings and loan institution. Lets assume a lender will loan 75 of your homes current market value. The mortgage loan from a savings and loan institution.

Another source of credit is credit card companies like visa mastercard American express and discover. Open End Credit This is a type of credit loan paid on installments in. E installment loan for purchasing a major appliance.

The loan has a term of 30 years with a fixed interest rate of 575. Example of an Open-End Mortgage For example assume a borrower obtains a 200000 open-end mortgage to purchase a home. 150000 x 075 112500.

But in this case it allows the borrower to increase the amount of the loan at a. AAn automobile loan BA department store credit card CAn installment loan for purchasing furniture. A good example of an open-end credit is A the use of a bank credit card to make a purchase.

A closed-end credit is a loan in which the amount is borrowed all at once and the total balance with the interests have to be paid in a specific date. For example with a credit card you can repay your balance and reborrow as long as the card issuer allows you to continue using the credit product. In this case Peter borrowed 225 but paid an interest of 20 and 3 as service charge.

Closed end credit is a loan for a stated amount that must be repaid in full by a certain date. The borrower is able to withdraw indefinitely until the limit is met. To better understand open-end credit it helps to know what closed-end credit means.

Essentially if the card issuer remains in business and the account remains in good standing your open-end credit could be. C automobile loan from a credit union. A direct loan for personal purposes home improvements or vacation expenses is called.

The bank is using. Automobile loan from a credit union. Installment loan from a furniture store.

An example of open-end credit is mortgage loans as there are specific open end mortgage loans available so correct option will be C mortgage loans Automobile loans and revolving check credit are closed ended loans. D installment loan from a furniture store. The terms on the loan depend on the borrowers credit rating and it is used for buying expensive things like cars and real estate.

An open-end loan also sometimes referred to as open-end credit is a form of borrowing that can be used up to a certain limit before it must be repaid. In contrast to more traditional loans which are given. A good example of an open-end credit is A the use of a bank credit card to make a purchase.

C automobile loan from a credit union. Tanya received a 1000 loan from the bank for a vacation. Installment loan for purchasing a major appliance.

A good example of an open-end credit is A. Open-end credit is distinguished from closed-end credit based on how the loan is provided to the borrower and whether or not the borrower can take the funds out again. A department store credit card.

An example of conventiona. Some of the examples are credit cards home equity loans personal lines of credit and overdraft protection on checking accounts. Which of the following is an example of open-end credit.

Subtract Balance due on Mortgage in this example 75000 is left 112500 - 75000 37500. An example of closed end credit is a car loan. Summary An open credit is a financial arrangement between a lender and a borrower that allows the latter to access credit repeatedly up to a specific maximum limit.

View Test Prep - Open End Credit examples from MATH 140 at Colorado Technical University. With some forms of open-end credit theres no end date. Closed end credit has a set payment amount every month.

A Single lump sum of credit B An installment loan for purchasing furniture C A mortgage loan D A department store credit card E An automobile loan. Finance questions and answers. B the mortgage loan from a savings and loan institution.

Credit card accounts home equity lines of credit HELOC and debit cards are all common examples of open-end credit though some like the HELOC have finite payback periods. Open-end loans are also sometimes referred to as revolving credit. In the consumer market home equity loans are an example of an open-end credit which allows homeowners to access funds based on the level of equity in the homes.

An open-end mortgage is a unique type of home loan in that the borrower has the opportunity to use the funds from the loan as needed even after they purchase the property. The issuing bank. With a closed-end loan you borrow a specific amount of money.

Because of this an example of closed-end credit is a home loan. Which of the following is an example of open-end credit.

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