Question

The cost of attendance at State University is $22,000 for the first year. Devise a periodic savings plan that will allow you to make small deposits for 5 years at a simple interest rate of 2% and save enough to pay for the first year at the university.

Answer 1

ina

Answer 2

idk i need the asnwer to

Answer 3

[AI-generated answer — Explain Bot]

To devise a periodic savings plan, we need to calculate the regular deposits you need to make in order to save $22,000 over a period of 5 years at a 2% simple interest rate.

The formula for calculating simple interest is: Interest = Principal x Rate x Time

Since the interest rate is given as 2% and the time is 5 years, we can calculate the interest as follows:
Interest = $22,000 x 0.02 x 5 = $2,200

Now, let's calculate the total amount you need to save, including the interest:
Total amount = Principal (Cost of attendance) + Interest = $22,000 + $2,200 = $24,200

To calculate the periodic savings, we divide the total amount by the number of periods (which is 5 years in this case).
Periodic savings = Total amount / Number of periods = $24,200 / 5 = $4,840

Therefore, you will need to make regular deposits of $4,840 every year for 5 years in order to save enough to pay for the first year at the university with a simple interest rate of 2%.