Explanation Down payment is the term used when the buyer purchase any item and pays a specific portion from the total amount after finalizing the transaction. It is generally paid in cash. It can be an evidence for the purchase of the item. In case, the borrower unable to pay the remaining amount, the amount paid as down payment is forfeited. It helps the borrower to decrease the interest paid, monthly payments and provide lenders a degree of assurance. Down payment can be computed by multiplying the purchase price with the down payment percentage. Down Payment = Purchase Price × Down Payment Percent For example, purchase price of a computer is $ 2 , 500 and down payment percent is 20 %

8th Edition

ISBN: 9781305888715

Author: Brechner

Publisher: CENGAGE LEARNING - CONSIGNMENT

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Chapter 13, Problem 10CR

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To fill: The blanks provided for the statement, “The portion of the purchase price of an asset paid in a lump sum at the time of purchase is known as the _____ payment.”

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The blanks provided for the statement, “The portion of the purchase price of an asset paid in a lump sum at the time of purchase is known as the _____ payment.”

Solution Summary: The author explains that down payment is the term used when the buyer purchase any item and pays a specific portion from the total amount after finalizing the transaction.

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To fill: The blanks provided for the statement, “The portion of the purchase price of an asset paid in a lump sum at the time of purchase is known as the _____ payment.”

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Chapter 13 Solutions