Instructions

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Name any 3 purchases (eg. applicances) which are often bought with instalment plans.
Applicances: Washing machine, Refrigerator, Audio systems

What are the deciding factors for purchase of goods with instalment plans?

• Amount of money we have for down payment
• Interest rate to be charged for hire purchase scheme
• Length of duration for repayment

Instalment Plans

items that can be bought by instalment are television, furniture, car, house, etc.

factors affecting are:
1. the amount of the item
2. the repayment period
3. the periodic repayment amount

Appliances and deciding factors

Appliances - TV, Computer and Refrigerator

Deciding factor - interest free, length of instalment period

Answers

1) - Laptops.
- Hi-fi system.
- LCD TV.

2) - No $$$.
- Invest $$$ in other place to earn more $$$.
- Don't know.

car, houses and beauty packages!

factors to consider:
1. interest rate,
2. length of payment

Items on Instalments

3 items to be purchased on instalments are :
1. house,
2. car and
3. club membership

Deciding Factors :
1. interest rates,
2. no. of years of instalments,
3. monthly "extra" money,
4. future value of membership and
5. type of car and uses for the car

Purchases With Instalment Plan

Big ticket items like car, house and perhaps even renovation work(for houses that is) are typically financed using instalments.



Deciding Factors

1. Cash flow/Availability of cash.

2. Use of cash for other purpose(that yields higher interest)

3. Availability of zero percent instalment plan.