Answer:
$4,000
Step-by-step explanation:
To calculate the balance you will owe after making the down payment, follow these steps:
1. Calculate the down payment amount: Multiply the total cost of the inventory ($5,000) by the down payment percentage (20% or 0.2).
Down payment amount = $5,000 x 0.2 = $1,000
2. Subtract the down payment amount from the total cost of the inventory to find the balance owed:
Balance owed = Total cost of the inventory - Down payment amount
Balance owed = $5,000 - $1,000 = $4,000
Therefore, the balance you will owe after making the down payment is $4,000.
