Usuryx Co Charges Interest on All Credit

question 62

Multiple Choice

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.

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