Final answer:
The payment plan offered by a furnace company for making regular monthly payments until the total price is paid off is known as Installment credit.
Step-by-step explanation:
The type of credit being described in the student's question about a furnace payment plan is A. Installment credit.
Installment credit allows borrowers to make regular monthly payments over a set period until they have paid off the total price of the purchase, in this case, the furnace. This is a common method of financing large purchases such as vehicles, appliances, or even a home mortgage. With installment credit, the borrower agrees to pay back the principal amount borrowed along with any interest or fees in regular payments, typically monthly, over a fixed period until the total debt is paid. This differs from noninstallment credit or revolving credit, where the payment terms and amounts can vary.
The loan approval and the monthly payment might be influenced by the borrower's credit history. A good credit history may result in lower interest rates and better payment conditions, reflecting the importance of maintaining a good credit profile.