Question

A person who can afford a monthly payment of and signs a loan agreement with a monthly payment of is most likely a victim of predatory lending. O A. $800; $1100 O B. $900; $800 O C. $900; $900 O D. $1100; $900​

Answer 1

The correct answer is A. $800; $1100, as this example indicates a case where a person is potentially a victim of predatory lending by having agreed to a loan with a higher monthly payment than they can afford.

Step-by-step explanation:

The question pertains to determining whether a loan agreement can be an example of predatory lending based on the discrepancy between what a person can afford to pay monthly and what they have actually agreed to pay. In this context, a person who can afford a monthly payment of a certain amount but signs a loan agreement with a higher monthly payment is most likely a victim of predatory lending. Therefore, the correct answer is A. $800; $1100, since the person can afford $800 but has agreed to a loan with a $1100 monthly payment, which is beyond what they can comfortably afford.

Answer 2

A. $800; $1100

Step-by-step explanation:

Predatory lending is an unfair and sometimes illegal practice by lenders of imposing expensive loans to borrowers. In predatory lending, the lender withholds critical information or deceives the customer into signing a loan that they cannot afford to repay. Lender employs dirty and unjust tricks to get the customer sigh for the loans.

If a lender can afford to pay a maximum of $800 per month, advancing them a loan requiring payment of $1100 per month is putting a lot of financial strain on them. It is an example of predatory lending as it imposes an unfair burden on the borrower