A deferred payment plan is also similar to an installment plan, except there are very low monthly payments until the end of the agreement. At that point, the entire purchase must be paid in full. If it is not paid, there will be high finance charges. Often, there is no interest-stores use no-interest deferred payment plans to attract customers. Many times there is also no down payment.
a. Chris purchases a living room furniture set for $4,345 from Halloran Gallery. She has a one-year, no interest, no money down, deferred payment plan. She does have to make a $15 monthly payment for the first 11 months. What is the sum of these monthly payments?
b. How much must Chris pay in the last month of this plan?
c. What is the difference between the layaway plan in Exercise 12 and the deferred payment plan?