Question

Priya borrowed $160 from her grandmother. Each month, she pays off one fourth of the remaining balance that she owes.

What amount will Priya pay her grandmother in the third month?

Answer 1

Priya paid $22.5 in the third month

Explanation:

Priya borrowed $160 from her grandmother.

Each month, she pays off one fourth of the remaining balance that she owes.

1st month:

$160*(1/4) = $40

So Priya paid $40 in the first month

$160 - $40 = $120

So Priya owes $120 after first month

2nd month:

$120*(1/4) = $30

So Priya paid $30 in the second month

$120 - $30 = $90

So Priya owes $90 after second month

3rd month:

$90*(1/4) = $22.5

So Priya paid $22.5 in the third month

The amount that she still owes is

$90 - $22.5 = $67.5