Question

Giselle used the table to predict the cost of one year of college.

Category
Estimated Cost 2017–2018
tuition
$12,450
room and board
$10,125
transportation
$2,600
books and fees
$2,250
other
$1,250

Giselle predicts that she will receive a grant for $4,000. If she has 4 years in which to save, what is the minimum monthly amount she should deposit in an interest bearing savings account to be able to pay her contribution for one year of college?
$400
$500
$600
$700

Answer 1

Total cost = 12,450 + 10,125 + 2,600 + 2,250 + 1,250 = $28,675.
After the $4,000 grant she must save $28,675 − $4,000 = $24,675.
Over 4 years = 48 months, monthly need = $24,675 ÷ 48 ≈ $514.06.
Given the choices, the minimum monthly deposit that covers this is $600.