## Section 11.2: Installment Buying

## 11.2 Outline

- Terminology
- types of installments
- closed-end loan
- open- end loan

- ways of calculating interest
- add-on interest
- amortization

- types of installments
- . Add-on interest
- installment loan formulas
- buying a car

- Annual percentage rate (APR)
- APR formula
- compare 0% financing with APR

- . Open-end