A student plans to attend college in 2 years. The student estimates the cost to attend the college will be $22,478
each year.
• The student's college fund has a balance of $10,000.
• The student will receive $2,500 in scholarships.
Based 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?
$415.75
B $831.50
© $936.59
• $1,457.42
To calculate the remaining amount the student needs to save each month to pay for the first year of college costs, we first need to find the total amount of money the student will have available for college after taking into account the college fund balance and scholarships.
Total available funds = College fund balance + Scholarships
Total available funds = $10,000 + $2,500
Total available funds = $12,500
Now we need to find the remaining amount needed for the first year of college costs.
Remaining amount needed = Total college cost - Total available funds
Remaining amount needed = $22,478 - $12,500
Remaining amount needed = $9,978
Next, we will divide the remaining amount needed by the number of months in 2 years to find the monthly savings needed.
Monthly savings needed = Remaining amount needed / 24
Monthly savings needed = $9,978 / 24
Monthly savings needed = $415.75
Therefore, the student will need to save $415.75 each month during the next 2 years to pay for the remaining first year of college costs. The answer is A. $415.75.