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

Explanation:

The total installment price refers to the overall amount paid over the course of installment payments. This includes the principal amount (cost of the product) and any interest or fees associated with the installment plan. Let's analyze each option:

• Option a: Just the cost of the product ignores interest and other charges in an installment plan, so it's incorrect.
• Option b: The total amount you end up paying (principal + interest + any applicable fees in an installment - based purchase) correctly defines the total installment price.
• Option c: Total interest paid is only a part of the total installment price, not the whole amount, so it's wrong.
• Option d: The amount paid at the time of purchase (down - payment, if any) is just an initial part of the total installment price (which is paid over multiple installments), so it's incorrect.

Answer:

B. total amount you end up paying