To determine the amount owed for an installment loan to purchase the stove, let's follow the steps described in the finance plan:
1. Identify the given data:
- Product price: [tex]$2000.00
- Discount rate: 20%
- Down payment: $[/tex]400.00
2. Calculate the discount amount:
- The discount is given as 20% of the product price.
- Discount amount [tex]\( = \text{Product price} \times \text{Discount rate} \)[/tex]
- Discount amount [tex]\( = 2000.00 \times 0.20 \)[/tex]
- Discount amount [tex]\( = 400.00 \)[/tex]
3. Calculate the price after the discount:
- Subtract the discount amount from the product price.
- Price after discount [tex]\( = \text{Product price} - \text{Discount amount} \)[/tex]
- Price after discount [tex]\( = 2000.00 - 400.00 \)[/tex]
- Price after discount [tex]\( = 1600.00 \)[/tex]
4. Calculate the amount owed after the down payment:
- Subtract the down payment from the price after discount.
- Amount owed [tex]\( = \text{Price after discount} - \text{Down payment} \)[/tex]
- Amount owed [tex]\( = 1600.00 - 400.00 \)[/tex]
- Amount owed [tex]\( = 1200.00 \)[/tex]
Therefore, the amount owed for the installment loan to purchase the stove is $1200.00.
