Question

The annual tuition at a public two-year college last year was $3,200. For the new school year, Elizabeth’s first year in college, the tuition is expected to increase 5%. She saved the same amount monthly to prepare for the cost of her tuition. What is the minimum amount Elizabeth should have saved monthly during the previous year?

Answer 1

he tuition of $3,200 increased by 5% is: 3,200 + 0.05*3,200 = 1.05*3,200 = $3,360

Elizabeth saved equal amounts each month for 12 months the previous year thus we divide $3,360 by 12 to find how much she saved monthly:

$3,360 : 12 = $280

The minimum amount Elizabeth should have saved monthly is $280.