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Installment Purchases

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

If the store keeps your purchase until it's paid for, you're using an _________ plan.

a)

installlment

b)

instillmint

c)

installment

d)

enstallment

e)

enstallmint

2.

If you take home your purchase and pay installments, you're using a ____ __ _____ plan.

a)

rent-to-own

b)

rent-two-own

c)

rent-too-own

d)

rent-to-uwn

e)

rint-to-own

3.

If you get behind on your rent-to-own installments, the store can ________, or take back your purchase.

a)

repossess

b)

reepossess

c)

repossis

d)

reposted

e)

repostess

4.

Make sure you get a ________ if a store sells your layaway item.

a)

refund

b)

receipt

c)

refurb

d)

reciept

e)

reefund

5.

An installment plan is where...

a)

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

b)

customers pay for expensive items whenever they have the money

c)

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

d)

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

6.

What is 10% of $2415.60 (rounded to the nearest cent)

a)

$2415

b)

$241.56

c)

$24156.00

d)

$2.42

7.

What is a downpayment?

a)

an amount equal to tax

b)

a percentage of the total cost of the item that is paid at the beginning

c)

an amount of money that is paid every month on an item

d)

that last payment that is made on an item before you own it

8.

How much is a 10% downpayment on an item that costs $5800?

a)

$5800.00

b)

$580.00

c)

$58.00

d)

$5.80

9.

What is one problem with installment plans?

a)

You have to pay too much in the beginning

b)

It's too difficult to spell

c)

You have to pay GST every month on the payments

d)

The price you pay over a year or two years is MORE than what you would pay if you pay up front.

10.

What is the final cost of a gaming system after 12 months if you pay $37.99 a month? (tax is already included)

a)

91.76

b)

$480.00

c)

$455.88

d)

$181.99

11.

What is the total amount paid after 24 months if the monthly installment is $50?

a)

$1200

b)

$2400

c)

$600

d)

$1000

12.

Which of the following is a benefit of using a layaway plan?

a)

You get a discount on the total price

b)

You pay no interest on the item

c)

You can take the item home immediately

d)

You can return the item anytime

13.

If you pay $200 as a downpayment on a $2000 item, what percentage of the total cost is the downpayment?

a)

15%

b)

20%

c)

10%

d)

5%

14.

What is the main advantage of a rent-to-own plan?

a)

You can own the item after completing all payments

b)

You get a discount on the total price

c)

You pay no taxes

d)

You can return the item anytime

15.

If you pay $75 monthly for 18 months, what is the total cost of the item?

a)

$1350

b)

$1500

c)

$1200

d)

$1800

16.

Which of the following is a characteristic of a layaway plan?

a)

You pay a penalty for early payment

b)

You make payments and receive the item after full payment

c)

You can take the item home immediately

d)

You pay interest on the item

17.

Why is it important to track your expenses?

a)

To make sure you don't spend more than you have

b)

It's not important

c)

So you can brag to friends

d)

To make your parents happy

18.

What is the total cost of an item if you pay $45 monthly for 20 months?

a)

$1000

b)

$900

c)

$850

d)

$950

19.

If you make a 15% downpayment on an item costing $3000, how much is the downpayment?

a)

$150

b)

$300

c)

$450

d)

$600

20.

Which of the following is a disadvantage of a rent-to-own plan?

a)

You can return the item anytime

b)

You pay no interest on the item

c)

You may end up paying more than the item's original price

d)

You can own the item after completing all payments