7
QuizMultiple Choice

Financial Goals

Question 7 • 26-27 RPA Financial Math - MA2007 IC

The Polleys want to put in a swimming pool next summer. They need to save $6,000 over 12 months in order to achieve this goal. They set aside the same amount each month and after 7 months discovered they have saved $3,100. The Polleys know that they must adjust their plan in order to meet their goal, so they come up with the following options: Option A: Save the original amount for each month but put the pool in one month later than originally planned. Option B: Increase savings for each month by $100 from their original plan. Which of the following statements is true?

Answer
A
Only option A will allow them to meet their goal.
B
Only option B will allow them to meet their goal.
C
Either option A or B will allow them to meet their goal.
D
Neither option A nor option B will allow them to meet their goal.

Explanation

The original monthly savings amount is $6,000 ÷ 12 = $500. With Option A, saving $500 for six more months gives them $3,100 + $3,000 = $6,100. With Option B, they save $100 more each month, or $600, for the five months left in the original schedule, giving them $3,100 + $3,000 = $6,100. Either option reaches the $6,000 goal, so the correct choice is “Either option A or B will allow them to meet their goal.”

AI-written and checked against the verified answer.

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