Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit history. If she does not pay back the loan within three weeks, she will have to pay an extra $50. Raina says the loan is an example of easy-access credit while Maura says it is an example of open-end credit. Which statement about the loan is correct?

A. Raina is correct because the loan is a line of credit

.

B. Maura is correct because the loan has an interest rate.

C. Raina is correct because the loan has a large fee if it is not repaid on time.

D. Maura is correct because the loan does not have an annual fee.

Question

Mathematics

Hunter Johns

15 January, 12:07

Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit history. If she does not pay back the loan within three weeks, she will have to pay an extra $50. Raina says the loan is an example of easy-access credit while Maura says it is an example of open-end credit. Which statement about the loan is correct?

A. Raina is correct because the loan is a line of credit

.

B. Maura is correct because the loan has an interest rate.

C. Raina is correct because the loan has a large fee if it is not repaid on time.

D. Maura is correct because the loan does not have an annual fee.

+2

Answers (2)

Know the Answer?

Jaxon · Answer 1

The answer is

C. Raina is correct because the loan has a large fee if it is not repaid on time.

Josephine Cummings · Answer 2

The correct answer is:

C) Raina is correct because the loan has a large fee if it is not repaid on time.

Explanation:

Easy-access credit is credit that is easy to gain. Credit checks are not required, and there are large fees associated with this type of loan.

Open-end credit is also known as a "line of credit"; it is a loan that a borrower can use repeatedly up to a specified limit. An example of this would be a credit card, or home equity line of credit.