On average, the annual cost to attend a 2-year public institution in the 2020-2021 academic year is $3,900. If the goal is to cover the cost for two years at a 2-year public institution after 3 years of investment, what is the minimum amount a student should be saving each month?

Question

On average, the annual cost to attend a 2-year public institution in the 2020-2021 academic year is $3,900. If the goal is to cover the cost for two years at a 2-year public institution after 3 years of investment, what is the minimum amount a student should be saving each month?

$125
$125

$225
$225

$175
$175

$300
$300

Answer 1

To calculate the minimum amount a student should be saving each month, we need to find the total cost for two years at a 2-year public institution. Since the annual cost is $3,900, the total cost for two years would be $3,900 * 2 = $7800.

Since the student wants to cover this cost after 3 years of investment, they need to save this amount in 3 years. So, the monthly savings required would be $7800 / 36 (months) = $216.67.

None of the given options match this amount exactly. However, the closest amount is $225, so the minimum amount a student should be saving each month is $225.