Question

What is meant by the term total installment price?

a.

cost of the product

c.

total interest paid on the loan

b.

total amount you end up paying

d.

amount you pay at the time of purchase

Answer 1

b. total amount you end up paying

Explanation:

Total installment price is the total amount a consumer or customer end up paying for goods and services.

Mathematically, it can be calculated by using the formula below;

Total Installment Price = ([Monthly payment] × [No. of payments] + Down payment)

You multiply the monthly revenue by the amount of payments and add it to the down the payment.