1. I can calculate the amount financed on an installment loan. I can find the monthly payment.

2. Vocabulary & Formulas Installment Loan: repaid in several equal payments over a specific time. Down Payment: portion of the cash price. Down Payment = Cash Price x Percent Amount Financed: the portion of the cash price you owe after making the down payment. Amount Financed = Cash Price – Down Payment. Monthly Payment = (Amount Financed ÷ 100) x Value from table on p. 799

3. Example 1 Big Screen TV Cash Price: $1,999.99 10% Down Payment Down Payment = Cash Price x Percent = $1,999.99 x.10 = 199.999 = $200.00 Amount Financed = Cash Price – Down Payment = $1,999.99 - $200.00 = $1,799.99

4. To find the monthly payment we will use p. 799 chart on simple interest installment loans. The big screen TV can be financed for 12 months at 8%. From the table: 8.70 Monthly Payment = (Amount Financed ÷ 100) x Value from table = ($1,799.99 ÷ 100) x 8.70 = $17.9999 x 8.70 = $156.60 monthly

5. Example 2 New Carpeting Cash Price: $3450 15% Down Payment 18% Interest for 6 months

6. Down Payment = Cash Price x Percent = $3450 x.15 = $517.50 Amount Financed = Cash Price – Down Payment = $3450 - $517.50 = $2,932.50 From table: 17.55 Monthly Payment = (Amount Financed ÷ 100 ) x Value from table = ($2,932.50 ÷ 100) x 17.55 = $29.33 x 17.55 = $514.74 monthly!

7. B19: p. 289 First do #11-14 & #19 then work on #15-#18. On #15-#18 you must find the down payment, amount financed, and monthly payment. Use 12% for 24 months as the financing terms on each.