A car loan is offered at 8% annual interest, compounded annually. After the first year, the interest due is $240. What is the principal on the loan? The answer explanation states: $3,000. Although this looks like an interest problem, you can think of it as a percent change problem. The percent chang...

Thank you Ron. I edited my original post. Thank you.

Thank you Ron. Yes, P time a number bigger than 1 should be bigger than $240 but I was not sure of how to rectify it. Thank you. And yes, I would love to have a car lease with only 1 payment made per year :) Thank you again.