MA.912.F.3.5Archived Standard

Calculate deferred payments.

Clarifications

Example: You want to buy a sofa that cost $899. Company A will let you pay $100 down and then pay the remaining amount over 3 years at 22% interest. Company B will not make you pay a down payment and they will defer payments for one year. However, you will accrue interest at a rate of 20 % interest during that first year. Starting the second year you will have to pay the new amount for 2 years at a rate of 26 % interest. Which deal is better and why? Calculate the total amount paid for both deals. Example: An electronics company advertises that you don't have to pay anything for 2 years. If you bought a big screen TV for $2999 on January 1st what would your balance be two years later if you haven't made any payments assuming an interest rate of 23.99%? What would your monthly payments be to pay the TV off in 2 years? What did the TV really cost you?
General Information
Subject Area: X-Mathematics (former standards - 2008)
Grade: 912
Body of Knowledge: Financial Literacy
Idea: Level 2: Basic Application of Skills & Concepts
Standard: Loans and Financing - Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
Date Adopted or Revised: 09/07
Date of Last Rating: 06/07
Status: State Board Approved - Archived

Related Courses

This benchmark is part of these courses.
1200500: Advanced Algebra with Financial Applications (Specifically in versions: 2014 - 2015 (course terminated))
7912105: Fundamental Consumer Mathematics (Specifically in versions: 2013 - 2015, 2015 - 2017 (course terminated))
7921042: Fundamental Economics with Financial Literacy (Specifically in versions: 2014 - 2015, 2015 - 2017 (course terminated))
7921022: Access Economics with Financial Literacy (Specifically in versions: 2014 - 2015, 2015 - 2018, 2018 and beyond (current))

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