# Deferred Payment vs. Cash Price: Calculation & Interest

Instructions:

question 1 of 3

### An electronics item has a price tag of \$59. What is the cash price of this item?

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### 2. Adriana bought a bicycle at \$300 on a deferred payment plan with an annual interest rate of 20 percent and 12 monthly payments. Calculate her repayment for the first month.

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In this quiz, you will be assessed on your ability to use what you've learned to solve problems that ask you to calculate cash price and deferred payment.

## Quiz & Worksheet Goals

Use this quiz and worksheet to test your ability to:

• Calculate the cash price of an item
• Determine the monthly payment before interest in a deferred payment plan
• Find the least expensive payment options in real-life scenarios

## Skills Practiced

• Making connections- use understanding of the concept payment options and their costs
• Problem solving - use acquired knowledge to calculate the cash price of an item
• Knowledge application- use your knowledge to answer a question that asks you to calculate a monthly payment before interest on a deferred payment plan

Review the lesson titled Deferred Payment vs. Cash Price: Calculation & Interest to get more details on this financial topic. These are some objectives it covers:

• Define cash price
• Distinguish between cash price and deferred payment
• Identify the benefits of deferred payments
• Name the pros and cons of cash price
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