GOODMORNING Please have notebook and pencil ready Unit

GOODMORNING Please have notebook and pencil ready

Unit 2 Make Ups tomorrow morning at 7: 40 u o n An ts n e m e c n Quarter 1 Project Notes and assignments can be accessed on Student. VUE, Microsoft Teams and our class website: chollacruzmathfinance. weebly. co m

CONSUMER CREDIT Unit 3

3. 1 INTRODUCTION TO CONSUMER CREDIT

Introduction In a complete sentence, answer the following in your notebook. ■ What are some of the advantages and disadvantages of using credit?

Objectives: I will be able to… ■ compute finance charges for installment purchases

Vocabulary

Vocabulary

Example 1: Heather bought a guitar for $2, 240 on the installment plan. It requires a 18% down payment and monthly payments of $88. 75 for the next two years. a) How much is the down payment? b) What is the total amount of the monthly payments? c) How much did she pay for the guitar on the installment plan? d) What is the finance charge?

Example 1 a: SOLUTION Heather bought a guitar for $2, 240 on the installment plan. It requires a 18% down payment and monthly payments of $88. 75 for the next two years. How much is the down payment? What do we know? Work ■ Cost of guitar • 2240 x 0. 18 = 403. 2 ■ % down (written as decimal) • 0. 18 Answer The down payment is $403. 20.

Example 1 b: SOLUTION Heather bought a guitar for $2, 240 on the installment plan. It requires a 18% down payment and monthly payments of $88. 75 for the next two years. What is the total amount of the monthly payments? Work What do we know? ■ Monthly payment amount • 88. 75 x 24 = 2130 ■ Number of monthly payments • 2 years (in months) • 24 months Answer The total amount of the monthly payments is $2130.

Example 1 c: SOLUTION Heather bought a guitar for $2, 240 on the installment plan. It requires a 18% down payment and monthly payments of $88. 75 for the next two years. How much did she pay for the guitar on the installment plan? Work What do we know? ■ Down payment amount • 403. 20 + 2130 = 2533. 2 ■ Total amount of monthly payments • 2130 Answer She paid $2533. 20 for the guitar on the installment plan.

Example 1 d: SOLUTION Heather bought a guitar for $2, 240 on the installment plan. It requires a 18% down payment and monthly payments of $88. 75 for the next two years. What is the finance charge (interest)? What do we know? Work ■ Total cost • 2533. 20 - 2240 = 293. 2 ■ Purchase price • 2240 Answer The finance charge (interest) is $293. 20.

Example 2: Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. a) What is the discount? b) What is the sale price? c) What is the sales tax? d) What is the total cost of the trumpet? e) What is the down payment? f) What is the total of the monthly payments? g) What is the total he paid on the installment plan? h) What is the finance charge (interest)?

Example 2 a: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the discount? What do we know? Work ■ Regular selling price • 543 x 0. 12 = 65. 16 ■ % Discount (written as decimal) • 12% Answer The discount was $65. 16.

Example 2 b: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the sale price? What do we know? Work ■ Regular selling price • 543 – 65. 16 = 477. 84 ■ Discount price • 65. 16 Answer The sale price is $477. 84.

Example 2 c: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the sales tax? What do we know? Work ■ Sale Price • 477. 84 x 0. 09 = 43. 0056 ■ % Tax (written as decimal) • 9% • 0. 09 Answer The sales tax is about $43. 01.

Example 2 d: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the total cost? What do we know? Work ■ Sale Price • 477. 84 + 43. 01 = 520. 85 ■ Sales Tax Amount • 43. 01 Answer The total cost is $520. 85.

Example 2 e: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the down payment? What do we know? Work ■ Total Cost • 520. 85 x 0. 17 = 88. 5445 ■ Down Payment (written as decimal) • 17% • 0. 17 Answer The down payment is about $88. 54.

Example 2 f: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the total of the monthly payments? What do we know? Work ■ Monthly Payments • 31 31 x 24 = 744 ■ Number of Payments • Two years (in months) • 24 Answer The total of the monthly payments is $744.

Example 2 g: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the total he paid on the installment plan? What do we know? Work ■ Down Payment Amount • 88. 54 + 744 = 832. 54 ■ Total of Monthly Payments • 744 Answer The total he paid on the installment plan was $832. 54.

Example 2 h: SOLUTION Jackson purchased a trumpet that regularly sold for $543 but was on sale at 12% off. He paid 9% tax and 17% of the total cost with tax as down payment. His monthly payments were $31 per month for two years. What is the finance charge (interest)? What do we know? Work ■ Installment Plan Total • 832. 54 – 520. 85 = 311. 69 ■ Total Cost • 520. 85 Answer The finance charge (interest) is $311. 69.

H O M E W O R K You can find the homework on Student. VUE, Microsoft Teams, and our website at chollacruzmathfinance. weebly. com. Then upload your completed assignment into the Student. VUE Drop. Box. ■ 3. 1 HW due Wednesday 10/21

Reminders 3. 1 Homework due Wednesday 10/21 Quarter 1 Project due Wednesday Unit 2 Make Ups tomorrow morning at 7: 40