ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lucas estimates he will need $7, 500 per year for college tuition. His parents can pay 75% of the cost, and he will need to cover the rest. If he has 4 years and wants to save enough to cover the first two years of his part, what is the minimum amount Lucas should save each month?
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Chandler says he should save at least $78.13 each month.
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Cassie says he should save at least $234.38 each month.
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Cost per credit is simply cost per semester divided by number of credits per semester i.e. 18000/9 = USD$2000 per credit making the total tuition fee cost at USD$72, 000 (cost per credit multiplied by total number of credits).
Detailed explanation-2: -If your family’s income is less than $75, 000, you’ll pay nothing. Families who earn more than $150, 000 may still qualify for financial aid.
There is 1 question to complete.