Christian has been saving $170 monthly for college. The investment account set up for him has a 3.75% annual interest rate, compounded monthly.
If Christian invests $170 monthly over a 4-year period, he will have a total amount of $8,816.47. On average, the annual cost of a 2-year public institution in the 2020-2021 academic year is $3,900.
Would this be enough for Christian to cover the cost of 2 years at a 2-year public institution? If Christian were to save the money without gaining any interest, approximately how long would it take him to reach $8,816.47?
(1 point)
No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.
Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.