Question

Marjorie wants to know what it will cost her to wait on saving for college. She asks you to help her with the math. She tells you that she can save $1,227 a year. She also tells you that she has four years until she begins college. How much more can she save if she begins saving now instead of in two years?

A.
$2,454

B.
$1,254

C.
$1,227

D.
$2,045

Answer 1

A. $2,454

If she starts now she can save for 4 years; if she waits 2 years she only saves 2 years. Difference = 2 × $1,227 = $2,454.