Hillary wants to purchase a refrigerator on credit. If she uses an installment plan, which of the following 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 percent 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 helps to reduce the amount being financed and minimize the risk for the lender. Discounted prices or tax exemptions are not guaranteed and finance charges may vary depending on the specific terms of the loan.

Hillary Wants to Purchase a Refrigerator on Credit