Lesson 2: 90-Day Purchase Plan

1. Lesson 2: 90-Day Purchase Plan Consumer Math p. 174-175

2. 90-Day Purchase Plan Some businesses offer their customers a Ninety Days Same as Cash plan with the purchase of large or expensive items. Rather than pay interest on a charge account, some customers choose this plan because they have 90 days to pay with no interest. The term means that within 90 days after the date of purchase, the purchase price must be paid in full. No interest is charged for the use of this plan.

3. Example Mr. Angello purchases a living room set on March 10 and uses the “Ninety Days Same as Cash” plan. By what date must he pay the total purchase price? • Find the number of days left in March. March has 31 days. (31 – 10 = 21) • Subtract the days left in March from 90, the total number of days in the purchase plan. (90 – 21 = 69) • Subtract the days in April from 69. There are 30 days in April. (69 – 30 = 39) • Subtract the days in May from 39. May has 31 days. (39 – 31 = 8) There are eight days left after May. The next month is June. June 8 is the final payment date.