Ch 36: MTEL Business: Interest & Purchases

About This Chapter

Use this chapter to improve you chances of success on the MTEL Business assessment. Brush up on your knowledge of interest and purchases by exploring lessons that cover credit terms, installment purchases and more.

MTEL Business: Interest & Purchases - Chapter Summary

When studying for the MTEL Business assessment, you want to feel confident that you know what to expect on exam day. This chapter explores interest and purchases, one of several exam topics. Review the lessons to prepare for questions that have to do with:

  • Using index numbers in statistics
  • Identifying and defining credit terms, including due date and invoice date
  • Examining the payments and terms of installment purchases
  • Calculating deferred payment vs. cash price, markup and markdown
  • Understanding the formula for effective annual rates
  • Analyzing and calculating percentage increases and decreases
  • Describing the terms and calculations of the promissory note

This chapter offers a number of benefits. You can access expert instructors from the comfort of your home or on-the-go via your mobile devices. Submit any questions about lesson topics to experienced educators who can provide the clarity you need.

8 Lessons in Chapter 36: MTEL Business: Interest & Purchases
Test your knowledge with a 30-question chapter practice test
Index Numbers in Statistics: Uses & Examples

1. Index Numbers in Statistics: Uses & Examples

Index numbers are used in statistics to represent changes in fields, instead of the raw data which is often difficult to read. See examples of the uses of index numbers in the stock market and the Consumer Price Index.

Credit Terms: Due Date, Invoice Date & EOM

2. Credit Terms: Due Date, Invoice Date & EOM

There are certain terms which are important to understand in relation to invoices and payments. Learn about the importance of the due date when payments are required, possible discounts for timely payments, and end of month (EOM) invoices that must be paid by the 30th or 31st of the given month.

Installment Purchases: Payment & Terms

3. Installment Purchases: Payment & Terms

Installment purchases allow buyers to purchase an item immediately and make payments over a period of time. Discover the terms of installment purchases, how to calculate interest on installments, and how to determine the amount of fixed or monthly payments.

Deferred Payment vs. Cash Price: Calculation & Interest

4. Deferred Payment vs. Cash Price: Calculation & Interest

The difference between a cash price and deferred payment is that the cash price is paid at the time of purchase while a deferred payment is made at a later date based on terms agreed to by the seller and buyer. Learn more about the definitions of cash price and deferred payment, and understand the formula used to calculate interest on an unpaid balance.

Markup & Markdown: Calculation & Examples

5. Markup & Markdown: Calculation & Examples

Markup refers to a price increase while markdown is a price decrease by amount or percentage. Learn how to calculate markups and markdowns, explore a t-shirt business example, and discover ways to manage special event pricing.

Effective Annual Rate: Formula & Calculations

6. Effective Annual Rate: Formula & Calculations

Effective annual rate is the calculation of interest rate done monthly, as opposed to how it is expressed yearly. Learn the differences between these calculations, and how the formula is applied in provided examples.

Percentage Increase and Decrease: Calculation and Examples

7. Percentage Increase and Decrease: Calculation and Examples

Percentage means out of 100, and percentage increases and decreases are simply the change of a variable expressed as a percentage (%). Learn how to calculate these through examples provided.

Promissory Note: Terms & Calculations

8. Promissory Note: Terms & Calculations

A promissory note is a promise to pay an agreed-upon amount that details the conditions of that payment. Learn to define a promissory note, examine terms and how they apply to the note, practice calculating payments, and explore how and why promissory notes may be sold.

Chapter Practice Exam
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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Other Chapters

Other chapters within the MTEL Business (19): Practice & Study Guide course