Question

Alex is nearing graduation. His counselor showed him this information. Alex's College Costs & Payment Options per Year Costs Methods of Payment Tuition & Fees Grants & Scholarship $10,100 $12,500 Room & Board Work-Study $11,750 $8,000 If his parents cannot help Alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him? He could work each summer to earn the $1,350 difference. He could wait a year for college and earn the difference. He could abandon his plans for college because he does not have enough money. He could take out a student loan for the difference of $1,350, plus an extra $2,000 a year for mad money.

Answer 1

The correct option is option A.

Step-by-step explanation:

As the options are mentioned in the question but are not discernable clearly, thus the options are as below:

a. He could work each summer to earn the $1,350 difference.

b. He could wait a year for college and earn the difference.

c. He could abandon his plans for college because he does not have enough money.

d. He could take out a student loan for the difference of $1,350, plus an extra $2,000 a year for mad money.

As per the minimum wage of 9 dollars per hour and a 40 hour week, Alex can earn the difference in roughly 4 weeks.

The correct option is A as it is the most logical option available.

Option b is not correct as with waiting one year he will fall behind his peers such that the the amount is also not significantly large.

Option c is not correct as the amount required is not significant and means are available to easily cover up the difference.

Option d is not correct as with the student loan, he has to return the amount with a higher interest rate.

Answer 2

A

Step-by-step explanation:

In my opinion, it is best he works the extra $1300 which wouldn't require him to abandon his college plans, wait an extra year or get himself into the trouble of loans.

Cheers