Question

John needs a new dishwasher and buys it from a store because they had a financing special that offered no interest charges for 12 months. What will the store do if he doesn't pay the entire amount off in that time

Answer 1

If John does not pay off the entire amount of the dishwasher within the 12-month no-interest financing period, the store will typically retroactively apply interest charges to the balance outstanding. This means he will be charged interest from the date of the purchase, usually at the standard annual percentage rate (APR) specified in the financing agreement. Additionally, John may also face late fees or penalties depending on the terms of the financing agreement. It’s important for him to read the fine print of the agreement to understand the specific consequences and terms associated with the financing offer.