Consumer Arithmetic and Purchase Plans

The video tutorial covers consumer arithmetic, focusing on purchase plans and installment payments. It explains the concept of buying items through purchase orders, comparing upfront payments with installment plans. Two examples are provided: buying a watch and a freezer, illustrating calculations for deposits, installments, and total costs. The video also discusses the interest and risk involved in purchase plans, emphasizing the financial implications of delayed payments.

What is the main topic discussed in the introduction of the video?

• Consumer arithmetic

• Statistics

• Geometry

• Algebra

What is a purchase order?

• A document to buy goods

• A document to exchange goods

• A document to sell goods

• A document to return goods

If you don't have money to buy a cellphone today, what is one option you can consider?

• Wait until you have enough money

• Sell your old phone

• Buy a cheaper phone

• Borrow money from a friend

What is a purchase plan?

• A plan to sell goods

• A plan to save money

• A plan to pay in installments

• A plan to invest money

In the example of purchasing a watch, what is the deposit percentage required?

• 15%

• 20%

• 10%

• 25%

How many months are the installments for the watch purchase plan?

• 24 months

• 12 months

• 18 months

• 30 months

What is the total cost of the watch when purchased through the installment plan?

• $40,000

• $43,000

• $45,000

• $35,000

How is the interest calculated in the purchase plan example?

• Fixed amount added to the cash price

• Percentage of the deposit

• Sum of all installments

• Difference between installment and cash price

What is the interest percentage of the cash price in the watch example?

• 15.5%

• 25.5%

• 20.5%

• 22.86%

In the freezer example, what is the cash discount percentage?

• 10%

• 15%

• 12%

• 18%