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?

Priya paid $22.5 in the third month

Step-by-step 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