what is the amount owed for an installment loan to purchase the item described in the table? finance plan…
what is the amount owed for an installment loan to purchase the item described in the table? finance plan product stove price $2000.00 discount 20% down payment $400.00
Answer
Explanation:
Step1: Calculate the discounted price
The discount is 20% of the original price. The original price of the stove is $2000. The discounted - price formula is $P_d=(1 - r)P$, where $r = 0.2$ and $P = 2000$. So $P_d=(1 - 0.2)\times2000=0.8\times2000 = 1600$.
Step2: Calculate the amount owed
The amount owed is the discounted price minus the down - payment. The down - payment is $400. So the amount owed $A=P_d - D$, where $P_d = 1600$ and $D = 400$. Then $A=1600 - 400=1200$.
Answer:
$1200$