Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has to pay the bank $900 to repay the loan. What type of credit is demonstrated in this scenario?

Question

Mathematics

Aylin Schaefer

24 March, 00:13

Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has to pay the bank $900 to repay the loan. What type of credit is demonstrated in this scenario?

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Answers (1)

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Diana Becker · Answer 1

Installment credit

Step-by-step explanation:

Installment credit, is a type of loan in which you borrow a fixed amount of money and once you get it, you agree on repaying it in installments on monthly basis until the loan is fully repaid.