11) The installment price minus the down payment equals the: A) cash price B) ne

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zrarsrr2x12

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Business Finance

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11) The installment price minus the down payment equals the:

A) cash price

B) net price

C) total payments

D) carrying charge

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Explanation & Answer

C) Total payments

The down payment is usually cash, but not the total purchase price; this is why it is not A. The down payment is part of the purchase price, so this is why it is not B) the net price. The carrying charge is the cost of doing an installment sale vs. a flat out sale. This is why it is C) Total payments; the installment price minus the down payments is what your future payments will total.

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