Question

Ronald’s parents have $35,000 saved and want to save a total of $125,000 for Ronald to go to college. Ronald’s parents began saving when Ronald was born and plan to save until he is 18 years old. Ronald is 5 years old now. About how much money do Ronald’s parents need to save each month?

Answer 1

Money need to save each month = $576.92 each month

Explanation:

Given:

Amount of money need to save = $125,000 - $35,000 = $90,000

Number of year remain = 18 - 5 = 13 year

Number of months = 13 x 12 = 156 months

Find:

Money need to save each month

Computation:

Money need to save each month = 90,000 / 156

Money need to save each month = $576.92 each month