What type of credit involves the balance of costly goods paid for in small monthly payments over time?

The concept of credit that involves the balance of costly goods being paid for in small monthly payments over time is best represented by closed-end credit. Closed-end credit refers to loans that are provided for a specific purpose, such as purchasing a car or financing a home, where the total amount borrowed is agreed upon upfront and payments are structured over a predetermined period until the loan is fully paid off.

A typical example of closed-end credit is an auto loan or a mortgage, where the borrower receives a lump sum and agrees to make monthly payments that cover both interest and principal until the entire amount is paid down. This type of credit results in a fixed number of installments, making budgeting and payment planning straightforward for the borrower.

In contrast, revolving and open-end credit allows borrowers to access funds repeatedly up to a certain limit, making repayments flexible and often tied to the balance owed rather than a fixed term. Secured credit, while it involves collateral, can also be revolving or closed-end depending on the structure of the loan. However, for the context of making fixed monthly payments for a specific good, closed-end credit accurately fits the description given.