Question

Arthur is 10 years old. Tuition for one year at a public two-year college is $3,125. In 8 years, tuition is expected to increase 32%. Arthur’s family plans to save for his college costs for 5 years. If the family saves $75 per month, will there be enough money to pay for the expected cost of one year at the college when he is 18?

No, they would need to save about $30 more per month to have enough money.

No, they would need to save about $15 more per month to have enough money.

Yes, they could save about $5 less per month and still have enough money.

Yes, they could save about $30 less per month and still have enough money.

Answer 1

Yes, they could save about $5 less per month and still have enough money.

Answer 2

They could save about $5 less per month and still have enough money.

Explanation:

Tuition for one year at a public two-year college is $3,125.

In 8 years, tuition is expected to increase 32%.

Arthur is 10 years old.

He will join college at 18 .

So, His tuition fees is expected to increase 32%.

So, tuition fee of one year for him=
`3125+32\% * 3125`

=
`4125`

Arthur’s family plans to save for his college costs for 5 years.

1 year = 12 months

5 years = 1285 = 60 months

So, the family need to save in 1 month =
`(4125)/(60)`

=
`68.75`

So, they need to save 68.75

We are given that the family saves $75 per month

Difference = 75-68.75=$6.25

So, They could save about $5 less per month and still have enough money.

Option C is correct.