Question

Lisa’s original financial plan required that she save $75 a month for two years in order to have $1,800 for the down payment on a car. However, after one year she has only managed to save $650. How much will Lisa have to save each month in the second year in order to reach her original goal of $1,800 (round up to two decimals places if needed)?

Answer 1

$95.83 each month

Explanation:

It is provided she needs to save $1,800 in total within a period of 2 years, that is 24 months.

Thus, in simple calculation without including any interest on her savings:

The amount she needs to save every month =
`(1,800)/(24) = 75\ dollars`

Now in the first year that is in total of 12 months she managed to collect $650 in total.

The target remaining to be achieved = $1,800 - $650 = $
`(1,150)/(12) = 95.83\ dollars`1,150

Time available = 12 months

Amount too be saved in each month =
`(1,150)/(12) = 95.83\ dollars\ per\ month`