Installment Buying

Installment Buying Installment Buying is purchasing a trade good over a period of time. In the process, an agreement is make between the seller and the buyer to divide the cost of goods into a number of periodic salarys called installments over a period of time. These installments, which whitethorn be salaried weekly, periodical, or yearly, are based on the unpaid balance. The unpaid balance is the amount obtained by subtracting the sign payment, or down payment, from the cost of goods. The down payment may include trade-in-value of the item and is considered part of the amount of cash paid at the time of purchase. The cost of goods purchased in installment may be higher than the cash price when carrying sharpens are added for the let of not paying the full cash price at the time of purchase. Example 1 Mrs. Gallo can purchase a accomplished camera for Php27,500 cash, or she can pay Php10,000 cash and Php3,150 a month for 6 months. If she buys it in cash, how much will she economise?

ascendant: Given: Cash price = Php27,500 Down payment = Php10,000 Monthly payment = Php3,150 for 6 months Required: savings if adroit camera is bought in cash Installment price = Php10,000 + (6 x 3,150) = Php10,000 + Php18,900 = Php28,900 Carrying charge = Php28,900 Php27,500 = Php1,400 Therefore, Mrs. Gallo will save Php1,400 if she buys in cash. Example 2 A monger offers a 4 x 6 imported carpeting for Php7,500, to be paid over a period of 8 months after an initial down payment of 1/5 the asking price. What is the amount of each monthly payment? Solution: Given: Price = Php7,500 Term = 8 months Down payment = 1/5 of the price Required: amount of each monthly payment Down payment = 1/5 x Php7,500 = Php1,500 Unpaid Balance = Php7,500 Php1,500 = Php6,000 Monthly payment = Php6,000 ÷ 8 = Php750 Example 3 A dining set is offered by dealer A for a down payment of Php2,500, with 12 monthly... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.