Question

Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?

Answer 1

Jake Skinner used a "Single Lump Sum Credit", which means he pays a single sum instead of paying over time.

Answer 2

Answer:

The correct answer is:  Lump-sum credit.

Explanation:

A lump-sum payment is a one-time payment for the total value of an asset. It is the opposite of taking a series of smaller payments that are made or distributed for some time. Retirements vehicles such as annuities and pensions can either pay every month or in a lump-sum.