Installment Loans pp SECTION

Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 2 of installment loan (p. 287) A loan repaid in several equal payments over a specified period of time. down payment (p. 287) A portion of the cash price of an item that has to be paid before financing the rest on credit. Key Words to Know

Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 3 of amount financed (p. 287) The portion of the cash price that is owed on an item after making the down payment. Key Words to Know

Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 4 of Amount Financed = Cash Price – Down Payment Formula 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 5 of Down Payment = Amount × Percent Formula 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 6 of Quint Terintino is buying a new refrigerator for $1,399. Terintino made a down payment of $199 and financed the remainder. How much did Terintino finance? Example 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 7 of Step: Find the amount financed. Cash Price – Down Payment $1,399 – $199 = $1,200 Example 1 Answer

Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 8 of Rebecca Clay purchased a washer and a dryer for $1,140. She used the store’s installment credit plan to pay for the items. She made a down payment and financed the remaining amount. What amount did she finance if she made a 20 percent down payment? Example 2

Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 9 of Find the 20 percent down payment. $1,140 × 20% = $228 Example 2 Answer: Step 1

Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 8-2, Slide 10 of Find the amount financed. Cash Price – Down Payment $1,140 – $228 = $912 Example 2 Answer: Step 2

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