Question

Linda just turned 15 and is planning to go to college. She has researched her favorite Texas university and discovered the tuition there is around $14,000 per year. From her 15th birthday, Linda received a $5000 gift that she will use for her first year of college tuition. Linda will begin her new part time job soon and wants to save money every month for the next 3 years to also contribute to her first year of college. What is the minimum amount of money Linda needs to save in order to completely pay for her first year of college tuition?

Answer 1

Linda needs to raise a minimum of $9,000 to completely pay for her tuition fee for the first year, that is, $250 per month

Explanation:

Tuition fee = $14,000 per year

Linda received a $5000 gift that she will use for her first year of college tuition during her 15th birthday

Amount remaining = Tuition fee - gift money received

= $14,000 - $5,000

= $9,000

Linda needs to raise $9,000 in the next three years to contribute to her first year of college tuition

The minimum amount Linda needs to save each month in the next three years to raise $9,000

= Remaining tuition / 3 years

= $9,000 / 3 * 12 months

= $9,000 / 36 months

= $250 per month