A business regularly extends credit to customers for large purchases with a standard interest rate of 5 percent. There is also a $200 installment fee that is added to the total cost of the purchase. A customer applies for credit but has a very low credit score. If the business decides to extend credit, which is most likely?
• 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 rates.
• The business will drop the fee to make the loan more affordable.