Question

help me explain deferred payment plans!
Explain, using complete sentences, how interest is calculated on a deferred payment plan in each of the following scenarios:

the balance is paid off within the deferment period
part of the balance is paid off within the deferment period
no payments are made within the deferment period

Answer 1

no payments are made within the deferment period

Answer 2

"Deferment period" means a time when you do not have to pay.

Whether or not interest is charged during this period is the issue and generally interest IS being charged on the balance, so the faster you pay off the balance, even when you do not have to pay it off, the less interest you will have been charged.