What is the amount owed for an installment loan to purchase the item described in the table?

\begin{tabular}{|l|r|}
\hline \multicolumn{2}{|c|}{Finance Plan} \\
\hline Product & Patio Furniture \\
\hline Price & \[tex]$2600.00 \\
\hline Discount & 20\% \\
\hline Down Payment & \$[/tex]100.00 \\
\hline
\end{tabular}



Answer :

Sure, let's break down the solution step-by-step to determine the amount owed for the installment loan to purchase the patio furniture as described.

1. Initial Information:
- The original price of the patio furniture is [tex]$2600.00. - There's a discount rate of 20%. - A down payment of $[/tex]100.00 is required.

2. Calculate the Discount Amount:
To find the discount amount, multiply the original price by the discount rate.
[tex]\[ \text{Discount Amount} = \text{Price} \times \text{Discount Rate} \][/tex]
Given that the price is [tex]$2600.00 and the discount rate is 20% (or 0.20 in decimal form): \[ \text{Discount Amount} = 2600.00 \times 0.20 = 520.00 \] So, the discount amount is $[/tex]520.00.

3. Calculate the New Price after Discount:
Subtract the discount amount from the original price to get the discounted price.
[tex]\[ \text{Discounted Price} = \text{Price} - \text{Discount Amount} \][/tex]
[tex]\[ \text{Discounted Price} = 2600.00 - 520.00 = 2080.00 \][/tex]
Hence, the discounted price is [tex]$2080.00. 4. Calculate the Amount Owed after Down Payment: Subtract the down payment from the discounted price to determine the amount owed. \[ \text{Amount Owed} = \text{Discounted Price} - \text{Down Payment} \] \[ \text{Amount Owed} = 2080.00 - 100.00 = 1980.00 \] Therefore, the amount owed after the down payment is $[/tex]1980.00.

In summary, the discount amount is [tex]$520.00, the new price after the discount is $[/tex]2080.00, and the amount owed after the down payment is [tex]\( \$1980.00 \)[/tex].