Question

A driver education course

Answer 1

Answer:

1. after 4.5 months (or 5)
2. $795

Step-by-step explanation:

10% of $100 per month is $10 per month.

1. By saving $10 per month on insurance cost, Dan's savings after 4.5 months will be equal to the $45 cost of his course. (If billing is monthly, he won't experience any net gain from the course until the 5th insurance payment--after 5 months.)

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2. In 7 years, the savings on insurance costs will total ...

  (7 years)×(12 months/year)×($10 /month) = $840

His cost for the course is $45, so his net saving is ...

  $840 -45 = $795 . . . net saving by age 25