Question

Esther estimates that she will need about $8,600.00 for the first year of tuition at college. Her grandparents contribution will cover $3,010.00 of the tuition expenses, and Esther will need to save to pay for the rest. If Esther has 2 years to save, what is the minimum amount that she should save each month for the next 2 years? Be sure to round your answer to the hundreths place value and answer in a complete statement.

Answer 1

$232.92

Step-by-step explanation:

Since Esther's parents have contributed a total of $3,010 to her tuition then Esther would need a total of

$8,600 - $3,010 = $5,590

Since there are a total of 24 months in a span of 2 years, then we would need to divide the total amount of money that Esther needs by these 24 months to calculate the minimum amount that she needs to save each month to reach her goal. Like so...

$5,590 / 24 = 232.916

Therefore, we can see that Esther would need to save a minimum of $232.92 every single month to be able to hit her goal of $5,590 in 2 years.