Question

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 12 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?

Answer 1

Total amount of money owed after three months = $22275
Total amount of money owed after 12 months = $18900
Amount of money repaid on 9 months = 22275 - 18900
                                                             = 3375 dollars
Then
Average payment rate on the principal = 3375/9
                                                              = 375 dollars
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