Installment buying

11.2 Outline

1. Terminology
   1. types of installments
      1. closed-end loan
      2. open- end loan
   2. ways of calculating interest
      1. add-on interest
      2. amortization
2. . Add-on interest
   1. installment loan formulas
   2. buying a car
3. Annual percentage rate (APR)
   1. APR formula
   2. compare 0% financing with APR
4. . Open-end