Question

Behati bought a couch at a store that was having a "buy now pay layer" sale. She bought the couch for $800, but she doesn't have to pay anything for 60 days. In 60 days she will have to pay $800 plus $50 interest. Which type of credit did she use?

Answer 1

Answer: Single lump-sum credit

Explanation:

With a single lump-sum credit, a person can buy goods without having to pay the full amount.

The buyer does not have to put down a down payment and will be required to pay off the amount they owe plus interest and service charges on a certain date. Behati therefore used a Single lump-sum credit.