Vocab
Allows customers to pay for merchandise over time without interest if payments are made on time.
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 percent was charged as a finance fee for the layaway plan?
25%
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
Zach bought a $6,300 furniture set on an installment plan. He made a 12% down payment, and he has to make monthly payments of $185 for the next 3 years.
What was the down payment in dollar?
756.00
A government program that offers assistance to employees who are injured while working on the job.
Worker's Compensation
Patty bought a large TV for $1,853 [including tax] on a deferred payment plan. She owes no interest as long as she finishes paying for the TV within two years. It requires a 15% down payment and a minimum payment of 2% of the purchase price
What is the minimum payment in dollars?
37.06
Convenience of receiving merchandise or services and paying for them over a period of time with interest; usually offered to creditworthy customers.
Convenience of receiving merchandise or services and paying for them over a period of time with interest; usually offered to creditworthy customers.
Natalie's price for the couch was $3,450. She speaks to the salesperson at the furniture who suggests that she buy the couch on the installment plan. It requires a 20% down payment. The remainder, plus an additional finance charge, is paid back monthly for the next year and half (18 months). The monthly payment is $165. What is the finance charge?
210
Allows customers to pay for merchandise over time without interest as long as payments are made on time.
Deferred Payment Plan
The mixer costs $1,280 before a 20% discount, and sales tax is 8.25% of the discounted price. If the down payment is 25% of the after-tax total cost, what is the down payment?
277.12
Suppose that on February 1, you have a credit card balance of $930. On February 8, you purchase an Apple
TV subscription for $7. On February 13, you return an item to Best Buy for a credit for $42.50. On February 19,
you make a payment of $400. On February 22, you go to Sam’s Club and make a purchase for $132. The
periodic rate is 2.4%. What is the average daily balance and finance charge for next month’s credit card
statement? The billing dates are from February 1 to February 29
Average Daily Balance
795.09