Usuryx Co. charges interest on all credit. On its credit application form the term is stated as "interest on unpaid balance over 30 days at 1% per month." Slident Co. has an amount owning beyond the 30 days period. Which of the following statements is TRUE?
A)Slident will have to pay interest at the rate of 1% per month.
B)Slident will have to pay interest at the rate of 5% per annum.
C)Slident will not have to pay any interest because the term violates the Interest Act.
D)Slident will have to pay interest at 12% per annum.
E)Slident will have to pay interest at 12% annually but not any administration costs.

Question

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The Answer of Usuryx Co. charges interest on all credit. On its credit application form the term is stated as "interest on unpaid balance over 30 days at 1% per month." Slident Co. has an amount owning beyond the 30 days period. Which of the following statements is TRUE?
A)Slident will have to pay interest at the rate of 1% per month.
B)Slident will have to pay interest at the rate of 5% per annum.
C)Slident will not have to pay any interest because the term violates the Interest Act.
D)Slident will have to pay interest at 12% per annum.
E)Slident will have to pay interest at 12% annually but not any administration costs.

Usuryx Co Charges Interest on All Credit