Question

Arthur is 10 years old. Tuition for one year at a public two-year college is $3,125. In 8 years, tuition is expected to increase 32%. Arthur’s family plans to save for his college costs for 5 years. If the family saves $75 per month, will there be enough money to pay for the expected cost of one year at the college when he is 18?

Answer 1

C) Yes, they could save about $5 less per month and still have enough money.

Answer 2

Answer: Yes, they could save about $5 less per month and still have enough money.

Explanation: Arthur is 10 years old. Tuition for one year at a public two-year college is $3,125. In 8 years, tuition is expected to increase 32%. Arthur’s family plans to save for his college costs for 5 years. If the family saves $75 per month, will there be enough money to pay for the expected cost of one year at the college when he is 18?

Yes they could save $75 and still have enough money to pay for one year at the college when he is 18.

Workings=

12( months) x 5 (years)= 60 months

If the family save $75 monthly for 5 years

$75 x 60 (months)= $4500

At the end of the family 5 years savings, they would be having a total of $4500 which would be more than enough to pay for the expected cost of one year at the college when he is 18.