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?
A. $400
B. $500
C. $600
D. $700
Answer (2)
Giselle needs to save a total of $24,675 for one year of college after her grant. Given that she has 48 months to save, the minimum monthly deposit she should make is approximately $514. To ensure she meets her goal, she should deposit $600 monthly.
;
Calculate the total cost of one year of college: T o t a lC os t = $12 , 450 + $10 , 125 + $2 , 600 + $2 , 250 + $1 , 250 = $28 , 675 .
Determine the amount Giselle needs to save after the grant: A m o u n tT o S a v e = $28 , 675 − $4 , 000 = $24 , 675 .
Calculate the total number of months Giselle has to save: T o t a lM o n t h s = 4 × 12 = 48 .
Calculate the minimum monthly deposit: M o n t h l yDe p os i t = 48 $24 , 675 = $514.0625 . Considering the provided options, the minimum monthly amount she should deposit is $600 .
Explanation
Calculate the Total Cost First, we need to calculate the total cost of one year of college by summing up all the individual costs: T o t a lC os t = T u i t i o n + R oo m A n d B o a r d + T r an s p or t a t i o n + B oo k s A n d F ees + Ot h er T o t a lC os t = $12 , 450 + $10 , 125 + $2 , 600 + $2 , 250 + $1 , 250 = $28 , 675 So, the total cost for one year of college is $28,675.
Calculate the Amount to Save Next, we need to determine the amount Giselle needs to save after receiving the grant: A m o u n tT o S a v e = T o t a lC os t − G r an t A m o u n t A m o u n tT o S a v e = $28 , 675 − $4 , 000 = $24 , 675 Giselle needs to save $24,675 after the grant.
Calculate the Total Months to Save Now, we calculate the total number of months Giselle has to save: T o t a lM o n t h s = N u mb er O f Y e a rs T o S a v e × 12 T o t a lM o n t h s = 4 × 12 = 48 Giselle has 48 months to save.
Calculate the Minimum Monthly Deposit Finally, we calculate the minimum monthly deposit Giselle should make: M o n t h l yDe p os i t = T o t a lM o n t h s A m o u n tT o S a v e M o n t h l yDe p os i t = 48 $24 , 675 = $514.0625 Since Giselle needs to deposit a whole number of dollars each month, she needs to deposit at least $515 each month to reach her goal. However, the options provided do not include this value. The closest value that ensures she has enough money would be $600.
Final Answer Considering the provided options, the minimum monthly amount she should deposit is $600 to ensure she has enough money for her college expenses.
Examples
Imagine you're planning a big event, like a charity run. You need to figure out all the costs: renting the venue, buying supplies, and marketing. Then, you estimate how much money you'll get from sponsorships and donations. By subtracting the expected income from the total costs, you know how much more money you need to raise. Dividing that amount by the number of weeks you have until the event tells you the minimum amount you need to raise each week to make the event a success. This is exactly the kind of planning Giselle is doing for her college expenses!
