Question

A business regularly extends credit to customers for large purchases with a standard interest rate of 5percent. There is also a $200 installment fee that is added to the total cost of the purchase. Thecustomer signs the paperwork but returns the next day saying that the installment fee is too high. Doesthe customer still have to pay it?
(1 point)
Yes, the customer has signed a contract.
No, customers have the right to reject unreasonable fees.
No, the customer is always right so the business should adjust.
Yes, the business has the right to charge whatever it wants for credit.
A)
A business regularly extends credit to customers for large purchases with a standard interest rate of 5percent. There is also a $200 installment fee that is added to the total cost of the purchase. A customerapplies for credit but has a very low credit score. If the business decides to extend credit, which is mostlikely?
(1 point)
The business will drop the fee to make the loan more affordable.
The customer will decide to take the loan out from a bank instead.
The fees and interest rates will be higher because of the greater risk.
The business is legally obligated to offer this customer its standard rat

Answer 1

Q1: Yes — the customer has signed a contract.
Q2: The fees and interest rates will be higher because of the greater risk.