Vocab
Convenience of receiving merchandise or services and paying for them over a period of time with interest; usually offered to creditworthy customers.
Installment Plan
Lillian purchased a violin from Smash Music Stores. It regularly sold for $790 but was on sale at
10% off. She also had to pay 7.5% sales tax. She bought it on an installment plan and paid 10%
of the total cost with tax as a down payment. Her monthly payments were $70 per month for
1 year
What is the discount?
79
A consumer credit plan where the customer makes monthly payments including a store holding fee; customer will receive merchandise when all payments are made.
Layaway Plan
If Lebron purchased a $1,100 refrigerator on an 11-month layaway plan and had to pay a monthly payment of $125, what is the sum of the monthly payments?
1375.00
Give every dollar in the budget a place to go in the budget, whether it’s to savings, debt, investments or charity.
Zero-Out Budget
If Lebron purchased a $1,100 refrigerator on an 11-month layaway plan and had to pay a monthly payment of $125, how much was the store fee for holding the refrigerator?
275.00
A government program that offers assistance to employees who are injured while working on the job.
Worker's Compensation
Coach Yorloff bought a large TV for $3,000 [including tax] on a deferred payment plan. He owes no interest as long as she finishes paying for the TV within 1.5 years. It requires a 10% down payment and a minimum payment of 4% of the purchase price.
What is the minimum payment in dollars?
120.00
Added-value options that employers often offer to full-time employees such as paid time off (PTO), child care leave, stock options, retirement plans and health care plans.
Employee Benefits
Craig wants to purchase a boat that costs $14,450. He signs an installment agreement requiring a 13% down payment. He currently has $1,900 saved. What is the down payment? Show all work to prove your answer.
1878.50