# Deferred Payment Plans

## Interactive practice questions

Han purchased a fridge, valued at $£702$£702, on terms. He paid a $6%$6% deposit, followed by monthly instalments of $£21$£21 over $3$3 years.

a

How much did Han pay as the deposit?

b

What was the balance owing after he paid the deposit?

c

How much in total did he pay in instalments?

d

How much did he pay for the fridge altogether?

e

How much interest did he pay?

f

What was the interest charged as a percentage of the cost of the fridge? Write your answer as a percentage to two decimal places.

g

What was the annual rate of simple interest charged for buying on terms?

Easy
Approx 11 minutes

Han purchased a couch, valued at $£726$£726, on terms.

He paid a $11%$11% deposit, followed by fortnightly instalments of $£10$£10 over $3$3 years.

Luke purchased a couch, valued at $£975$£975, on terms.

He paid a $12%$12% deposit, followed by weekly instalments of $£5$£5 over $4$4 years.

James purchased a car, valued at $£36653$£36653, on a deferred payment plan.

He paid a $£1714$£1714 deposit, followed by nothing for the first $6$6 months and then $31$31 monthly instalments of $£1266$£1266.