Question

The Sidebis want to put an addition on their house 18 months from now. They will need to save $19,620 to achieve this goal. They set aside the same amount each month, and after a year, they discover they have saved $6,120. The Sidebis must adjust their plan to meet their goal and came up with the following options:

Option A: Stay with saving the original amount each month but put the addition on one month later than originally planned.
Option B: Increase the amount of money they save each month by $120 from their original plan.
Which of the following statements is true?
a) Only option A will allow them to meet their goal.
b) Only option B will allow them to meet their goal.
c) Neither option A nor B will allow them to meet their goal.
d) Both options A and B will allow them to meet their goal.

Answer 1

Neither option A nor B will allow the Sidebis to meet their goal.

Step-by-step explanation:

To determine which option will allow the Sidebis to meet their goal, we need to compare the savings accumulated in each option after 18 months.

In option A, the Sidebis continue saving the original amount each month for 18 months. The amount saved in 12 months is $6,120, so the total amount saved in 18 months would be:

$6,120 x (18 / 12) = $9,180

In option B, the Sidebis increase the amount they save each month by $120. Assuming they save the increased amount for 18 months:

($6,120 + (18 x $120)) = $8,760

Since the target amount they need to save is $19,620, neither option A nor option B will allow them to meet their goal. Therefore, the correct answer is c) Neither option A nor B will allow them to meet their goal.