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.

A. $1000; $800
B. $1000; $900
C. $800; $700
D. $700; $900

Answer 1

it D.$700; $900 for apex

Answer 2

D. $700; $900

Explanation:

For a person to be a victim of predatory lending, his monthly payment capacity should be less than the monthly payment obligation as per the loan agreement. Evaluating the given options as per this criterion:

A. $1000 > $ 800 , hence non predatory

B. $1000 > $ 900 , hence non predatory

C. $800 > $700, hence non predatory

D. $700 < $900, hence this option is predatory.