The Brown family lease a computer system and make payments monthly
They payments reduce each month by the same percentage
They paid $900 in the second month
They paid $729 in the fourth month and $590.49 in the sixth month and so on.
How much did they pay in the first month?



Since the payments reduce each month by the same percentage, let’s call “x” the constant number that multiplied by the payment of a month gives you the payment of the following month. Since they paid $900 in the second month, in the third month they paid 900x, like this:
(900x) = third month
(900x)x = fourth month = 729
900x^2 = 729
x^2 = 729/900 = 0.81
x = 0.9
With this number, we can see that:
Fifth month = 729*0.9 = $656.1
Sixth month = 656.1*0.9 = $590.49 (consistent with what the problem says)
How much did they pay in the first month? Let’s call “y” that amount. Then:
y*0.9 = $900 (second month)
y = 900/0.9
y = 1000
So they paid exactly $1000 in the first month.
I hope this helps!
nth term of a geometric series is
ar^(n-1) where a = first term and r = ratio
second term n=2
ar^1 = 900
ar^(4-1) = 729
r^2 = 729/900
r = 0.9
a = 900/0.9 = 1000
They paid $1000 in the first month.
The difference between two payments is 19%.
$900 x 19% = $171
$900 + 171 = $1,071
simple