Question

Kirsten's homeowner's insurance cost $525 a year. Her first payment is $125. Then each payment is 20% of what she owes after the first payment. How much is each remaining payment?

Answer 1

Kirsten's homeowner's insurance cost per year: $525

First payment: $125

We need to calculate what she owes after the first payment: $525 - $125 = $400

We know that each payment is 20% of what she owes after the first payment. We take the 20% of $400:

$\frac{20}{100}\cdot400=80$

Then, each remaining payment will be $80.