Question

Julieta wants to attend a 4-year private university that costs $40,000 per year for tuition. Her parents plan to contribute a quarter of her tuition each year. She also received financial aid that covers another 25% of her tuition and a scholarship for $5,000. How much money will Julieta need to save each year over the next 3 years before her first year?

Answer 1

To determine how much Julieta needs to save each year, let's first calculate the total cost of her 4-year private university and then subtract her parents' contribution, financial aid, and scholarship.

1. **Total Cost of 4-Year Tuition**:
\[
\text{Total Tuition} = 4 \text{ years} \times \$40,000 \text{ per year} = \$160,000
\]

2. **Parents' Contribution**:
Julieta's parents will contribute a quarter of her tuition each year.
\[
\text{Parents' Contribution per year} = \frac{1}{4} \times \$40,000 = \$10,000
\]
Over 4 years, this amounts to:
\[
\text{Total Parents' Contribution} = 4 \times \$10,000 = \$40,000
\]

3. **Financial Aid**:
Financial aid covers 25% of her tuition each year.
\[
\text{Financial Aid per year} = 0.25 \times \$40,000 = \$10,000
\]
Over 4 years, this amounts to:
\[
\text{Total Financial Aid} = 4 \times \$10,000 = \$40,000
\]

4. **Scholarship**:
Julieta also receives a scholarship of \$5,000.

5. **Total Contributions and Aid**:
Combine her parents' contribution, financial aid, and scholarship:
\[
\text{Total Funding} = \text{Total Parents' Contribution} + \text{Total Financial Aid} + \text{Scholarship}
\]
\[
\text{Total Funding} = \$40,000 + \$40,000 + \$5,000 = \$85,000
\]

6. **Total Cost after Funding**:
Now we subtract the total funding from the total tuition to determine how much Julieta will still need to cover.
\[
\text{Remaining Tuition Cost} = \text{Total Tuition} - \text{Total Funding}
\]
\[
\text{Remaining Tuition Cost} = \$160,000 - \$85,000 = \$75,000
\]

7. **Savings Needed Per Year**:
Julieta has 3 years to save for the remaining \$75,000:
\[
\text{Savings per year} = \frac{\text{Remaining Tuition Cost}}{3}
\]
\[
\text{Savings per year} = \frac{75,000}{3} = \$25,000
\]

Therefore, Julieta will need to save **$25,000 each year** over the next 3 years before her first year.