Question

The total cost of attending a 2-year college is $24,000 for the first year

• A student's parents will pay half of this cost

• An academic scholarship will pay another $500.

Which amount is closest to the minimum that the student will need to save every month in order to pay off the remaining cost at the end of 12 months?

958.33

1958.33

1000.00

11500.00

Answer 1

The student's parents will pay half of the first-year cost, which is $12,000.

The academic scholarship will pay an additional $500, leaving the student with a remaining cost of $24,000 - $12,000 - $500 = $11,500 for the first year.

If the student wants to pay off the remaining $11,500 by the end of 12 months, they will need to save an average of $958.33 per month.

Therefore, the minimum amount that the student will need to save every month is approximately $958.33.