02.04: Spending: Deferment Spending Think about a big ticket item you wouldn’t mind having in your house (minimum $500). Is it new appliances, a new television, or a new set of living room furniture? The choice is yours! Part I: Research the Product and the Finance Offer Find the product you would like to purchase on the internet. Be sure you locate the product at one of the retail outlets that offers deferred payment plans. Some examples include Best Buy®, Home Depot®, and Rooms to Go®. Be sure to follow the guidelines and safety precautions for completing internet searches. Record the following information: a description of the product. the price of the product (as advertised) the store where you found the information At the same website, locate the page that describes the deferment plan. This could be titled, “Financing Offers,” “Credit Offers,” “Credit Promotion Details,” or something similar. Record the following information: minimum total purchase, not including sales tax length of the deferment period APR (annual percentage rate), assume that the APR is compounded monthly minimum payment requirement, for this assignment you will use $25 Part II: Calculations Now you will use the information you gathered in your research to perform some calculations. You must show your work, except where indicated. Although you probably found in your research a minimum payment requirement since it is required by law as of 2009, you will perform calculations when the minimum payment is required and when it is not required. Include Minimum Payment What is the remaining balance on the product immediately after the deferment period if you only made the minimum payment? (Hint: Start by using the compound interest formula and then subtract the minimum payments made during the deferment period). If you were required to pay off the product within five years after the deferment period, what would your monthly payment be after the deferment period? (Hint: You must use the Monthly Payment formula with your answer from Q1)