If a customer buys a boat and obtains a loan for three years, this is a type of credit known as a(an)
A) installment account.
B) open charge account.
C) revolving charge account.
D) trade credit.

Question

Quizplus · Accepted Answer

An installment account is a type of credit where the borrower agrees to pay back the loan in fixed payments over a set period, such as a three-year loan for a boat.

If a Customer Buys a Boat and Obtains a Loan