Question

An eighth-grade student estimated that she needs $9,500 for tuition and fees for each year of college She already has $5,000 in a savings account. The table shows the projected future value of the account in five years based on different monthly deposits.

The student wants to have enough money saved in five years to pay the tuition and fees for her first two years of college.

Based on the table, what is the minimum amount she should deposit in the savings account every month?

400

300

100

200

Answer 1

Answer: 300

1 year of tution and college fee: $9,500

= $9,500 × 2 = $19,000

2 years of tution and college fee: $19,000

Money already in Account = $5,000

If we deposit $100 every month for 5 years we would get $11,000 that is less than $19,000.

If we deposit $200 every month for 5 years qe would get $17,000 which is still less.

If we deposit $300 every month we would get $23,000 which is not less so the correct answer is $300.