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?

A.No, they would need to save about $30 more per month to have enough money.
B.No, they would need to save about $15 more per month to have enough money.
C.Yes, they could save about $5 less per month and still have enough money.
D.Yes, they could save about $30 less per month and still have enough money.

Answer 1

yes they could save about %5 dollars less per month and still have enough money for it

Explanation:

Answer 2

Answer:

Cost of college fee for one year in 8 years' time:
$3125 + 32% of $3125
=$3125 x 132/100
= $4125

If they save $75/month for 5 years:
75 x 12 x 5 = 4500
4500 > 4125
So, they will have enough money. This leaves option C and D since A and B are wrong.

Why C is correct and D is wrong:

If they followed D:
75 - 30 = 45
45 x 12 x 5 = 2700
2700 < 4125
So, it won't be enough if they save about $30 a month

If they followed C:
75 - 5 = 70
70 x 12 x 5 = 4200
4200 > 4125
So, it will still be enough if they save $5 a month

Therefore, the answer is C