Molly purchased a $1,500 dishwasher from Best Appliances. She will make 12 equal payments over the next year to pay for it. She is using

Question

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Closed-end credit is used for a specific purchase, such as a car or appliance, and involves a set repayment period and fixed payments. In this case, Molly has made a one-time purchase of a dishwasher and will make 12 equal payments over the next year to pay for it, which is an example of closed-end credit. Open-end credit, revolving check credit, and lines of credit involve ongoing borrowing and repayments, which are not applicable in this situation.

Molly Purchased a $1,500 Dishwasher from Best Appliances