Students will begin to understand the topic of down payments.
- Students will learn to define a down payment.
- Students will learn to calculate new price following a down payment.
- Students will learn to calculate payment plans based on new prices and down payments.
Suggested Grade Level
6th – 8th Grade
Many times, we will see word problems that use terms that we see in real life problems. These are terms related to money or to business and they are terms that we should know or will need to know to be able to figure out purchases.
One of these terms is the term down payment.
What is a down payment?
A down payment is an amount of money that is paid towards a total purchase.
This happens whenever people want to purchase something and they can’t afford the whole price at once. Often we see this with large items like appliances, houses or cars. We aren’t going to get into buying a car or a house in this lesson, but we will work with the idea of a down payment.
When someone makes a down payment, they pay a partial amount of the whole. Then that amount is subtracted from the total and what is left is the new amount that they need to pay.