Question

Explain, using complete sentences, how interest is calculated on a deferred payment plan in each of the following scenarios:

the balance is paid off within the deferment period
part of the balance is paid off within the deferment period
no payments are made within the deferment period

Answer 1

The Balance is Paid off within the Deferment Period

Explanation:

Let's start by recalling our deferment formula.

I always like to think "D=B/C"

Deferment=Broke/Cash

But since we want to know how it is paid off, the mathematical formula:
`B=D/C\\D/C=Period\\Period=Amount\\D/C=\alpha \\\alpha =D/C`