摘要：Installment selling is a form of relief to consumers by providing a delay inpayment. Installment sales are generally chosen because in addition to thecompany can attract more prospective buyers, could also be profitable for thecompany that is in addition to selling merchandise, the company could alsoreceive interest income from the installment payments. So with that expectedsales volumes and revenues could increase. Installment sales on the other handalso often bring loss for the company that is by decreasing the ability of buyersto pay the remaining installments in accordance with the agreed contract. Toavoid any possible redemption of the remainder of the installment payments,usually the seller is determining the amount of down payment, the amount ofinterest which will be borne by the buyer and the duration of the installmentpayment period.. Interest calculation method that can be used in the installmentsale of an interest is the method of the long end, short end interests, annuitiesand the rest of the contract price. Therefore, in this writing, the author tries tocompare the interest calculation method used by the company which is themethod by using the remaining contract price by the author. Based oncalculations by the author of interest, it turns out that the method used by thecompany are appropriate and also more profitable. This can be seen from theamount of interest income received by the company as compared with othermethods.
