Question

Iman has 48 months to save $18,000, the maximum amount he estimates his first year of college will cost. He does not want to depend on interest, and does not consider interest when determining his minimum monthly savings goal.

What is the minimum amount he should save per month to achieve his goal?

Answer 1

The minimum amount that Iman should save is $375 

Answer 2

ANSWER: $375

EXPLANATION: Iman wants to save $18,000 in 48 months without depending on interests. He wants to save the entire amount on his own. So, we will need to divide the amount he wants to save by the number of months he has got to save. So, $18,000 ÷ 48 = $375.