Question

Lillian made a down payment of $150 on some hockey equipment. The balance of the purchase price was paid for using a deferred payment plan with an 18-month introductory period. The interest rate is 26.79%. If the purchase price of the hockey equipment was $975 and minimum payments of $12 were made during the deferment period, what is the balance after the deferment period?

Answer 1

Is the definition of the deferment period that no interest accumulates during the deferment period?

Answer 2

If that is the case (which is how I read it), the balance after the deferment period will be the purchase price minus the down payment minus the (I assume eighteen monthly) payments of $12.