A total of $120 is invested monthly with an annual compound interest rate of 6%, compounded monthly. Which of the following calculations explains how you can find the principal amount at the beginning of the second month? (1 point)
• 120(1 + 0.005) + 120
• 120(1 + 0.005)?
• 120(1 + 0.06) + 120
• 120 - 2
The correct calculation is 120(1 + 0.005).
This is because the principal amount at the beginning of the second month is the original principal plus the interest earned in the first month. The interest earned in the first month can be calculated by multiplying the principal (120) by the monthly interest rate (0.005). Adding this interest to the original principal gives us the principal amount at the beginning of the second month.
After graduating from high school, Estrella plans to work for two years while living at home. She will work 50 weeks a year. Develop a plan that will enable her to save $26,000 for a two-year program at a community college.
(1 point)
• Estrella should save $275 each week she works for two years.
• Estrella should save $250 each week she works for two years.
• Estrella should save $1,000 a month for two years.
• Estrella should save $260 each week she works for two years.
Estrella should save $260 each week she works for two years.
To calculate this, we can divide the total amount she needs to save ($26,000) by the number of weeks she will work (50 weeks/year) multiplied by the number of years she will work (2 years).
$26,000 / (50 weeks/year * 2 years) = $260/week
So, Estrella should save $260 each week she works for two years in order to reach her goal of $26,000 for her community college program.
Arianna has just had a child. She and her husband's net income is $60,000 a year between them. She has established a savings account for her child that needs to contain $90,000 after 18 years. What percent of her household's income will need to be set aside for the baby's college fund? (1 point)
8%
• 9.6%
8.3%
5.6%
To find the percent of Arianna's household income that needs to be set aside for the baby's college fund, we need to determine the annual amount she needs to save.
Divide the total amount needed for the college fund ($90,000) by the number of years (18) to find the annual amount she needs to save:
$90,000 / 18 years = $5,000 per year
Now, divide the annual amount Arianna needs to save ($5,000) by the household's net income ($60,000) and multiply by 100 to get the percentage:
($5,000 / $60,000) * 100 = 8.3%
Therefore, Arianna will need to set aside approximately 8.3% of her household's income for the baby's college fund.
Eben figures he can work a part-time job for 20 hours a week, 50 weeks a year, for the next four years to earn money for his higher education. He wants to pursue a two-year program at a community college and figures he will need $22,500 each year for tuition, fees, and living expenses. What is the minimum he must make per hour?
(1 point)
• $10.50
• $11.25
$10.82
$5.63
To find the minimum amount Eben must make per hour, we need to divide the total amount he needs for the two-year program ($22,500/year * 2 years = $45,000) by the total number of hours he will work during that period (20 hours/week * 50 weeks/year * 4 years = 4,000 hours).
Therefore, the minimum amount Eben must make per hour is $45,000 / 4,000 hours = $11.25 per hour.
So, the correct answer is $11.25.