Question

If a student stays in his​ hometown, he can go to an​ in-state college at a reduced tuition of ​$8000 per year and pay ​$700 per month in rent. Or he can leave​ home, go to an​ out-of-state college with a​ $10,000 scholarship​ (per year), pay ​$19,000 per year in​ tuition, and pay ​$400 per month to live in a dormitory. He will pay ​$1,500 per year to travel back and forth from the​ out-of-state college. Assuming all other factors are​ equal, which is the less expensive choice on an annual​ (12-month) basis?

Answer 1

Going to an out-of-state college is the less expensive choice on an annual basis.

Step-by-step explanation:

To compare the costs of staying in his hometown or going to an out-of-state college, we need to calculate the expenses for each option on an annual basis.

Option 1: Staying in hometown
Tuition: $8,000 per year
Rent: $700 per month * 12 months = $8,400 per year
Total cost: $8,000 + $8,400 = $16,400 per year

Option 2: Out-of-state college
Tuition: $19,000 per year
Scholarship: -$10,000 per year
Dormitory: $400 per month * 12 months = $4,800 per year
Travel: $1,500 per year
Total cost: $19,000 - $10,000 + $4,800 + $1,500 = $15,300 per year

Comparing the total costs, option 2 (going to an out-of-state college) is the less expensive choice on an annual basis, with a total cost of $15,300 per year.