Hillary wants to purchase a refrigerator on credit.If she uses an instalment plan, what is most likely to occur?
A)A down payment will be required.
B)A discounted price on her purchase will not be offered.
C)By law, finance charges on her account cannot exceed 20 per cent of the purchase price.
D)Taxes will not be charged.

Question

Quizplus · Accepted Answer

When using an installment plan, it is common for a down payment to be required. This is because the seller wants to ensure that the buyer has some financial stake in the purchase and will be more likely to make payments on time. The other options are not necessarily true in all situations. A discounted price may still be offered with an installment plan, finance charges can vary by agreement, and taxes may or may not be charged depending on the seller's location and tax regulations.

Hillary Wants to Purchase a Refrigerator on Credit