Question

Michael saves $423 dollars a month for college.

a. About how much money will he have saved after 4 years?
b. Will your estimate be lower or higher than the actual amount Michael will save? How do you know?

Answer 1

(a). $20,000

(b). The estimate will be lower than the actual amount.

Explanation:

We have been given that Michael saves $423 dollars a month for college.

(a). We know that 1 year equals 12 months.

4 years = 4*12 months = 48 months.

`\text{Actual amount saved}=\$423* 48`

Since we are asked to find the estimated amount of money Michael will save in 4 years, so we will estimate both quantities as:

`423\approx 400\\\\48\approx 50`

`\text{Actual amount saved}=\$400* 50`

`\text{Actual amount saved}=\$20,000`

Therefore, Michael will save approximately $20,000 in 4 years.

(b).

The estimate will be lower than the actual amount as we rounded $423 down $23 to nearest hundred that is $400 and rounded 48 up 2 to nearest ten that is 40.

Therefore, the estimate will be lower than the actual amount.