Final answer:
Credit to a buyer is extended through installment plans, which differ from sales tax, finance charges, or the average daily balance method of calculating finance charges.
Step-by-step explanation:
Stores extend credit to a buyer through installment plans. An installment plan is a credit/payment arrangement that allows a buyer to take possession of an item immediately and pay for it in periodic installments over a set period. It differs from sales tax, which is a percentage of a sale that goes to the government, and from finance charges, which are additional costs for borrowing money, like the interest a credit card company charges on the unpaid balance. The average daily balance is a method for calculating finance charges based on the amount of debt a person carries each day.