Legislation Commonly Requires That an Installment-Sale Contract Specify the Cash

question 27

True/False

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

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Definitions:

Principal

The original amount of money invested or lent, before interest or earnings are added.

Earn Interest

The process by which money deposited in a savings account or investment grows over time due to the payment of interest.

Months

Units of time measurement that constitute roughly one-twelfth of a year, used in planning and tracking various financial activities.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage of the principal.