Time-Price Differential

• Author: Jeffrey Lehman, Shirelle Phelps

Page 38

A method whereby a seller charges one amount for the immediate cash payment of merchandise and another amount for the same item or items when payment is rendered at a future date or in installments.

The immediate payment price is called the cash-price; the later price is known as the time-price or credit-price. The time-price differential is the difference between...