Respuesta :
Giselle should put at least $600 in an interest bearing savings account. She has 4 years to save money for college and although she predicts she may receive a $4,000 grant, that does not mean she will. Her expenses are well over $4,000 and if she saves $600 a month for 48 months she will have $28,800 saved without the added interest she will be earning monthly.
Answer: $600
Explanation:
Total Estimated Cost is given by
$12,450 + $10,125 + $2,600 + $2,250 + $1,250
= $28,675
Allowable time to save = 4 years
= 4 * 12 months
= 48 months
Hence,
The amount to save per month is given by
$28,675 ÷ 48
= $597.40
Therefore,
She should save a minimum of $600 monthly. With this, she will be able to pay for her college in one year.
Note : the $4,000 grant was excluded from the calculation because it's a prediction.
