Question

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Both options A and B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal.

Answer 1

its d

Explanation:

its on edg

Answer 2

Option A.

We are given that they only save $4,000 for 12 months. Therefore the savings per month is:

Savings per month = $4,000 / 12 months

Savings per month = $333.33 per month

So if they postpone their wedding for 2 months, therefore the total saving period becomes 22 months. Hence the total amount saved is:

Total amount saved = ($333.33 / month) * 22 months

Total amount saved = $7,333.33

Option B.

The plan is to increase the savings per month by $80, therefore this becomes:

Savings per month = $333.33 + $80

Savings per month = $413.33

For the remaining 8 months, they can save:

Savings for remaining 8 months = ($413.33) * 8

Savings for remaining 8 months = $3306.64

The total amount saved is:

Total amount saved = $4,000 + $3306.64

Total amount saved = $7,306.64

So no option give us $8,000, hence the answer is:

d. Neither option A nor option B will allow them to meet their goal.