Mmmm..I wondered about this one yesterday, too !!!
One fourth of one third = (1/12) * 3600 = 300......so he has paid 3300 after 30 payments
So, letting a1 be the first payment and d be the monthly payment after that (i.e., the common difference), we have
a1 + 39d = 3600
a1 + 29d = 3300 ...multiply the second equation by -1 and add it to the first one
10d = 300
d=30
a1 + 29(30) = 300
a1 + 870 = 300
a1 = -570
I still come up with a negative initial payment.......maybe I'm doing something wrong......can anybody else help out??