Sabrina bought a new washing machine. She put $50 down and pays $50 per month for the next 10 months to be able to make the purchase. Which type of credit did she use?

A. an installment sales credit

B. an installment cash credit

C. a single lump-sum credit

D. a bank line of credit

When an individual borrows a fixed amount of money from another person, bank, or financial institution he has to return the borrowed funds in smaller amounts. This smaller amount which is paid by the borrower is referred to as installments.

This installment helps an individual to borrow a big amount of money when needed and allows them to pay in smaller quantities to avoid any financial burden.

In a an installment sales credit, a person is allowed to have Credit sales which is a method for businesses to increase customers' compensation deduction options for a limited time.

In this case when Sabrina bought a new machine. she puts$50 down and Pays $50 per month for the next months reflecting the presence of sales credit.

Therefore, option A an installment sales credit is the appropraite answer.

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Sabrina bought a new washing machine. She put $50 down and pays $50 per month for the next 10 months to be able to make the purchase. Which type of credit did she use? A. an installment sales credit B. an installment cash credit C. a single lump-sum credit D. a bank line of credit

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What is an installment?

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Sabrina bought a new washing machine. She put $50 down and pays $50 per month for the next 10 months to be able to make the purchase. Which type of credit did she use?

A. an installment sales credit

B. an installment cash credit

C. a single lump-sum credit

D. a bank line of credit