Time-Price Differential


Also found in: Financial.

Time-Price Differential

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 the two prices.

References in periodicals archive ?
The court said that the time-price differential is interest and that the legislature "intended, on the one hand, to free parties to retail installment sales contracts to agree to interest rates reflective of market conditions and, on the other, to protect consumers from overreaching merchants by imposing an absolute cap of 30 percent within which the parties to a RISA contract could negotiate.
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