Question

The annual tuition at a public two-year college last year was $3,200. For the new school year, Elizabeth’s first year in college, the tuition is expected to increase 5%. She saved the same amount monthly to prepare for the cost of her tuition. What is the minimum amount Elizabeth should have saved monthly during the previous year?
$267
$280
$308
$400

Answer 1

Last year's tuition × 1.05 = new tuition: 3200 × 1.05 = 3360.
Divide by 12 months: 3360 ÷ 12 = 280.

Answer: $280.