Question

Alma just turned 15 years old. Her parents started saving $300 each month for her college education when she was born. Her parents want to save at least $150,000 by the time she turns 18 to cover tuition expenses at a 4-year college. How much would they need to save each month for the next 3 years to reach their goal?

A) $700
B) $5,400
C) $2,700
D) $300

Answer 1

Alma's parents would need to save $4,166.67 per month for the next 3 years to reach their goal of $150,000.

Step-by-step explanation:

To calculate how much Alma's parents would need to save each month for the next 3 years, we need to find the total amount they need to save and divide it by the number of months. Alma's parents want to save $150,000 over 3 years, which is a total of 36 months (3 years * 12 months). So, they would need to save $150,000 / 36 = $4,166.67 per month.