An eighth-grade student estimated that she needs $8,800 for tuition and fees for each year of college. She already has $5,000 in
a savings account. The table above shows the projected future value of the account in five years based on different monthly deposits. The student wants to have enough money saved in five years to pay the tuition and fees for her first two years of college. Based on the table, what is the minimum amount she should deposit in the savings account every month? A) $200 B) $300 C) $100 D) $400
In this problem, we first need to find how much the total cost of the first 2 years in college will be. Since the tuition fee and fess for each year of college will cost $8,800, then we need to multiple that value by the number of years the student wants to pay for.
$8,800 x 2 = $17,600
The student will need a total of $17,600 to pay for the first 2 years of college.
The table shows that at a monthly deposit of $200, the students account value will be at $18,737. With the minimal amount of $200 deposited each month for the next 5 years, the student will have more than enough to pay for the first 2 years of college.
In this problem, we first need to find how much the total cost of the first 2 years in college will be. Since the tuition fee and fess for each year of college will cost $8,800, then we need to multiple that value by the number of years the student wants to pay for.
$8,800 x 2 = $17,600
The student will need a total of $17,600 to pay for the first 2 years of college.
The table shows that at a monthly deposit of $200, the students account value will be at $18,737. With the minimal amount of $200 deposited each month for the next 5 years, the student will have more than enough to pay for the first 2 years of college.
