Erica decided that she was going to go to a 2-year college, which was going to cost a total of $18,500. She earned a scholarship that was going to pay for $4,000 total and her parents gave her $8,000. She wanted to save enough money to pay for the total amount. How much would she need to save each month, if she was going to save for 1 year?
$650.00
$483.25
$1541.67
$541.67
To find out how much Erica would need to save each month for 1 year, we first need to determine the total amount she would need to save after receiving the scholarship and money from her parents.
Total cost of college - Scholarship - Parents' contribution = Amount Erica would need to save
$18,500 - $4,000 - $8,000 = $6,500
Now, we need to determine how much Erica would need to save each month for 1 year (12 months).
$6,500 / 12 months = $541.67
So, Erica would need to save $541.67 each month for 1 year in order to pay for the total cost of her 2-year college education.