1 Find the amount financed, the installment price, and the finance charge of an
installment loan.
The cash price is the price you pay if you pay all at once at the time of the
purchase. If you pay on an installment basis instead, the down payment is a
partial payment of the cash price at the time of the purchase. The amount
financed is the cash price minus the down payment. The installment payment is
the amount you pay each period, including interest, to pay off the loan. The
installment price is the total paid, including all of the installment payments, the
finance charges, and the down payment.
Finance charges or carrying charges: the interest and any fee associated with
an installment loan.
Cash price: the price if all charges are paid at once at the time of the purchase.
Down payment: a partial payment that is paid at the time of the purchase.
Amount financed: the cash price minus the down payment.
Installment payment: the amount that is paid (including interest) in each regular
payment.
Installment price: the total amount paid for a purchase, including all payments,
the finance charges, and the down payment.