Elle spent $3,000 from her checking account and borrowed $7,000 through a personal loan to renovate her home. She also spends $300 each month on maintenance. What is Elle's liability in this scenario?

A liability is an amount a person owes to someone else. Elle borrowed $7,000 through a personal loan, so she must repay that amount. The $3,000 from her checking account and the $300 monthly maintenance cost are expenses, not borrowed money. The correct choice is the $7,000 personal loan.

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