Installment Buying Flashcard

Front

What is the formula to calculate the amount financed in installment buying?

Back

Amount Financed = Total Cost - Down Payment

Front

If the total installment price is $1200 and the down payment is $200, what is the amount financed?

Back

$1000

Front

Explain the concept of finance charge in installment buying.

Back

The finance charge is the cost of borrowing money to purchase goods or services on credit.

Front

Calculate the finance charge if the amount financed is $800 and the total installment price is $1000.

Back

$200

Front

What is the formula to calculate the total installment price in installment buying?

Back

Total Installment Price = Cash Price + (Cash Price * Interest Rate)

Front

If the finance charge is $150 and the amount financed is $2000, what is the total installment price?

Back

$2150

Front

Define installment buying and its importance in personal finance.

Back

A method of purchasing a commodity by paying for it in small, regular installments over time.

Front

If the finance charge is $300 and the total installment price is $2500, what is the amount financed?

Back

$2200

Front

How does installment buying differ from other forms of purchasing?

Back

Installment buying allows the purchaser to make payments over time.

Front

If the finance charge is 10% of the amount financed and the total installment price is $1500, what is the amount financed?

Back

1363.64