Round to the nearest penny.
You are going to a 4-year college in 4 years that will cost $14,895.00/yr. Your parents expect you to pay 5% of the total cost.
If you want to save your total contribution for all 4 years before you start attending college, how much do you need to save each month if you have 4 years to accomplish your goal?
First, we need to calculate the total cost for all 4 years of college:
$14,895.00/yr x 4 years = $59,580.00
Then, we need to calculate how much the student needs to save over the 4 years:
5% of $59,580.00 = $2,979.00
Since the student has 4 years to save this amount, we divide it by 48 months (4 years x 12 months) to find out how much they need to save each month:
$2,979.00 / 48 = $62.06
Therefore, the student needs to save $62.06 each month to be able to contribute 5% of the total cost for all 4 years of college.