Both my husband and I are avid gardeners. Every year we are adding new beds to our yard for future growth. This is backbreaking work and using a rototiller makes the work easier. We have never had a rototiller so we are starting to look for one. The one we found was $899.99. Heres what we learned.

What item did you select? Rototiller

What store did you go to? Troy-Tipp Lawn Equipment, Tipp City, Ohio

How much does the item cost if you pay cash, and/or pay the loan off within the terms of the agreement? Purchase Price plus 7% tax.

What are the financing terms if it is financed on time with installment payments?

There is a twelve-month plan. The plan states that the interest will be charged if the purchase payment is not paid within the promotional period, or if the account becomes 60 days past-due.

What rate of interest do they charge? 27.99% variable

Is there any penalty for late payments? If any payment becomes over 60 days late interest is due on entire amount 27.99% applies.

Is there any penalty for paying the loan off early? No

What are the financing terms if it is financed on time with installment payments?

The term is for 12 months same as cash, 12 equal payments. Terms state that the interest will be charged if the monthly payment is not received within 60 days.

What rate of interest do they charge? 27.99% variable

Is there any penalty for late payments?

If any payment is more than 60 days late, 100% of interest is applied.

Is there any penalty for paying the loan off early? No

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan?

How much interest will you pay if you do not pay the loan within the term and meet all the conditions of the loan?

Any other information you learn or things you should consider regarding this item.

Another option to purchasing using the credit account of 12 months same as cash is to save the money in our bank account and pay cash.

Is it a good deal to purchase it on time from this store?

If I want to purchase, this current deal is a good one because it offers the opportunity to not have to pay interest on the purchase while not having to pay cash up front. 12 months to pay the money, same as cash, is a long time to use someone elses money free. Risk is in not being able to pay the payment on time because of: poor planning, or not having the funds available.

Question 1

How much does the item cost if you pay cash, and/or pay the loan off within the terms of the agreement? Purchase Price plus 7% tax

$962.99 |
||

$899 |
||

$1100 |
||

$888.48 |

Question 2

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? Assume that the loan is compounding monthly. First, you need to calculate the payment; so, what is TVM variable: the number of periods N ?

12 |
||

3 |
||

1 |
||

2 |

Question 3

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? First, you need to calculate the payment; so, what is TVM variable: interest rate (periodic rate) I ?

2.4992 |
||

2.3325 |
||

27.99 |
||

Unknown |

Question 4

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? First, you need to calculate the payment; so, what is TVM variable: Present Value (PV) of the carpet (purchase price plus tax)?

$962.99 |
||

$899 |
||

$1,100 |
||

$888.48 |

Question 5

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? First, you need to calculate the payment; so, now you have all the TVM variables. Now solve for Payment (press PMT). What is the payment?

$92.93 |
||

$67.45 |
||

$184.50 |
||

$89.95 |

Question 6

What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? Now, how much will you pay back (take monthly payment times term)?

$1,115.15 |
||

$962.99 |
||

$1234.50 |
||

$899.99 |

Question 7

How much interest will you pay if you do not pay the loan within the term and meet all the conditions of the loan? (Payments x number of months) minus (purchase price + tax) = Interest. What is the interest?

$152.16 |
||

$66.12 |
||

$134.50 |
||

$163.50 |

Subject | Mathematics |

Due By (Pacific Time) | 09/28/2015 12:00 am |

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