A student plans to attend college in 2 years. The student estimates the cost to attend the college will be $22,478 each year.%0D%0A%0D%0AThe student’s college fund has a balance of $10,000.%0D%0AThe student will receive $2,500 in scholarships.%0D%0ABased on this information, which amount will the student need to save each month during the next 2 years to pay for the remaining first year of college costs?
To calculate the amount the student will need to save each month during the next 2 years to pay for the remaining first year of college costs, we first need to determine the total cost for the first year of college after scholarships are applied.
Total cost = $22,478 - $2,500 = $19,978
Next, we need to determine the remaining amount the student needs to save after considering the college fund balance.
Remaining amount = $19,978 - $10,000 = $9,978
Since the student has 2 years to save, we need to divide the remaining amount by 24 months to find out how much the student needs to save each month.
Monthly savings = $9,978 / 24 = $415.75
Therefore, the student will need to save approximately $415.75 each month for the next 2 years to pay for the remaining first year of college costs.