Hillary wants to purchase refrigerator on credit. If she uses an installment plan, which of the following is most likely to occur?
A) She will be required to make a down payment.
B) She will not be charged taxes.
C) By law, finance charges on her account cannot exceed 20 percent of the purchase price.
D) She will not get a discounted price on her purchase.

Question

Quizplus · Accepted Answer

When using an installment plan, it is likely that Hillary will be required to make a down payment. This is because the down payment serves as a form of collateral for the lender and reduces the overall amount that needs to be financed. The other choices are not necessarily true or required by law.

Hillary Wants to Purchase Refrigerator on Credit