Question

Yvette's homeowner's insurance costs $740 a year. Her first payment is $200. Then each payment is 10% of what she owes after the first payment. How much is each remaining payment?

Answer 1

$43.74

Explanation:

Yvette's homeowner's insurance costs $740 a year. She paid $200 for the first payment.

To find out how much each remaining payment is, we need to subtract the first payment from the total cost of the insurance, and then divide the result by the number of remaining payments.

Total amount due after the first payment = $740 - $200 = $540

Number of remaining payments = total number of payments - 1 = 1 payment per year - 1 payment already made = 0 remaining payments

Since there are no remaining payments, we cannot determine how much each remaining payment is. However, if we assume that Yvette will make 9 more payments, we can calculate the amount of each remaining payment as follows:

Amount of each remaining payment = 10% of the amount owed after the previous payment

First remaining payment = 10% of $540 = $54

Second remaining payment = 10% of ($540 - $54) = 10% of $486 = $48.60

Third remaining payment = 10% of ($540 - $54 - $48.60) = 10% of $437.40 = $43.74

And so on, until all 9 remaining payments have been calculated. Note that the actual amount of each remaining payment may vary slightly depending on how the insurance company calculates the payments.