Question

6) John just turned 15 years old. His parents started saving $300 each month for hiscollege education when he was born. His parents want to save at least $150,000 bythe time he turns 18 to cover tuition expenses at a 4-year college. How much wouldthey need to save each month for the next 3 years to reach their goal?A.$300OB.$700C.$2,700D.$5.400

Answer 1

C. $2,700

Step-by-step explanation:

First, we need to know how much they had saved. So, if they save $300 each month for 15 years, the total amount saved is:

$300 x 15 years x 12 months = $54000

Then, they have a goal of $150,000, so they need to save $96,000 in the next 3 years because:

$150,000 - $54,000 = $96,000

Finally, 3 years have 36 months because

3 x 12 months = 36 month

So, to know how much would they need to save each month, we should divide $96,000 by 36 months:

`(96000)/(36)=\text{ \$2666.66 }\approx\text{ \$2700}`

Therefore, they need to save $2700 each month for the next 3 years to reach their goal.