Question

Michael will attend college in 5 years. He anticipates he will need $19,000 to pay for the first year. He currently has $6,400 in a savings account.
Without including any interest earned, what is a reasonable estimate of the amount Michael needs to deposit into his savings account each month over the next 5 years to be able to pay for his first year of college?
$200
$350
$500
$650

Answer 1

Answer:

A reasonable estimate close to $210 is $350.

Step-by-step explanation:

Actually Michael has $6400 in savings account and he needs to save each month to achieve the goal of $19000 in 5 years. Then, he needs to save

19000-6400 = 12600 dollars in 5 years.

Now, 5 years are 5*12 = 60 months. Then to calculate the estimate he needs to save per month we need to divide the amount of money that he needs to save by the number of months.

12600/60 = 210. Then, he needs to save in his savings account $210 each month to be able to pay his first year of college in 5 years. In the options, $200 per month is not enough to save the total amount and there isn't an option of $210, then a reasonable estimate close to $210 is $350.

Answer 2

He would need $210 per month, so round to $200