This worksheet is NOT intended to replace the homework that you received in your booklet in class. It is here so that you can double check your understanding of the main examples of instalment buying and deferred payment plans shown on this site. MAKE SURE to complete all homework assigned by your teacher.

1. Steve-o wants to buy a new plasma TV. He can buy it now for $5800 plus taxes, or he can pay in instalments by paying $1000 down and $250 a month for 24 months (taxes are already included in the instalment plan. What is the difference in price between buying the TV directly and paying in instalments?

2. You decide to buy a dining room set from Gordo's Fine Furniture for $4600. You are going to take advantage of their buy now, pay later plan. If you want to pay later you must pay the taxes, a $50 administration fee, and a $25 delivery charge up front.

a) How much will you pay up front?
b) What will be the total cost of the dining room set?

Answers

1. 7000 - 6612 = $388

2. a) $644 (taxes) + $50 (admin fee) + $25 (delivery charge) = $719
b) $4600 + $719 = $5319