Answer:
- after 4.5 months (or 5)
- $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
