Question

Problem #1

Every month, Simone pays her car loan through automatic payments (withdrawals) from her
savings account. She pays the same amount on her car loan each month. At the end of the year,
her savings account balance changed by -$3, 000 from payments made on her car loan.
a. What is the change in Simone's savings account balance each month due to her car
payment?

Answer 1

Savings account balance reduces by $250

Change in savings account balance = -$250

Explanation:

In 12 months, Simone paid a total of $3000

So per month her payment was 3000/12 = 250

So her savings account also reduces by $250 per month due to car payments. This is indicated as a negative change = -$250