Question: Snow-House sells a $1,980 snow thrower on the installment plan. The installment agreement includes a 20% down payment and 12 monthly payments of $161 each.
1. **State the problem:**
We need to verify the total amount paid for a $1980 snow thrower sold with a 20% down payment and 12 monthly payments of $161 each.
2. **Formula and rules:**
- Down payment = 20% of the total price.
- Monthly payments total = number of payments \( \times \) payment amount.
- Total paid = down payment + total monthly payments.
3. **Calculate the down payment:**
$$\text{Down payment} = 0.20 \times 1980 = 396$$
4. **Calculate total monthly payments:**
$$\text{Total monthly payments} = 12 \times 161 = 1932$$
5. **Calculate total amount paid:**
$$\text{Total paid} = 396 + 1932 = 2328$$
6. **Interpretation:**
The buyer pays $396 upfront and then $161 each month for 12 months, totaling $2328, which is more than the original price due to installment terms.