5.3 Instalment Plans

An instalment plan is where...

• customers pay for expensive items, in equal payments over a period of time

• customers pay for expensive items whenever they have the money

• customers pay for half up front and then half later when they get their item

• customers pay a fee to have their purchase installed in their home

What is sometimes an added cost for choosing an instalment plan?

• HST

• administration fees

• weekly payments

• discounts

What is the major benefit of paying for something with an instalment plan?

• Paying less money in the long run

• Having to make a large upfront payment
• Getting the item immediately without paying the whole cost up front

• Paying more money in the long run

Sammy purchases a new $4700 TV for $0 down makes equal monthly payments over the next 2 years to pay for it. How much will each payment be?

• $195.83
• $251.49

• $313.46

• $175.76

Joanne purchases a used car for $9300. There is a $75 administration fee. If she pays for the administration fee and HST up front, how much will she pay right away?

• $1293.75

• $3850.75

• $2375.75

• $4488.75

Joanne purchases a used car for $9300. There is a $75 administration fee. She already paid for the administration fee and HST up front. If she makes monthly payments to pay for the car over the next 3 years, how much should each instalment be?

• $258.33

• $600.51

• $400.24

• $158.75