Your aunt bought a new car. After three months of car payments she owed a total of $22,275 to the bank for the car loan. After 1
2 months, she owed $18,900 to the bank for the car loan. What was her average payment rate on the principal of the car loan during this time?
1 answer:
The principal decreases by
22275 -18900 = 3375
in those 9 months, so the average monthly principal payment is
3375/9 = 375
Her average payment rate on the principal during this time is $375 per month.
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