Question

The total cost of attending a state university is $19,700 for the first year. • A student's grandparents will pay half of this cost. • An athletic scholarship will pay another $5,000. Which amount is closest to the minimum that the student will need to save every month in order to pay off the remaining cost at the end of 12 months?

Answer 1

The student will have to save a minimum of $404.17 every month.

Explanation:

The total cost of attending the sate university is $19, 700 for the first year alone.

Total cost for a year = $19700

A student's grandparent will pay half of the cost . This means the grand parents will pay

1/2 of the total cost for a year

1/2 × 19700 = $9850

The grand parent will pay $9850

An athletic scholarship will pay $5000 . It will be 9850 - 5000 = 4850 . The remaining amount to pay is $4850 .

At the end of 12 months the minimum amount the student will save every month to be able to pay the remaining amount will be the amount payable divided by 12 month.

minimum amount to save every month = 4850/12

minimum amount to save every month = 404.16666667

minimum amount to save every month ≈ 404.17

Answer 2

The student will have to save $404.2 minimum monthly

Explanation:

Given that the total cost for the first year= $19,700

The grandparents paid half the amount = 1/2(19700)= $9850

The remaining balance to be paid is

19,700 - 9850=$9850

If an athlete paid $5000

The the remaining balance to be paid = 9850-5000=$4850

For the student to clear this amount in 12 months he must save

monthly 4850/12= $404.166

Hence the minimum amount to be saved per month is $404.2