20
QuizMultiple Choice

Planning for the Cost of College

Question 20 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

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?

Answer
A
$200
B
$350
C
$500
D
$650

Explanation

Michael needs $19,000, and he already has $6,400, so he must save $19,000 − $6,400 = $12,600 more. Five years is 60 months, and $12,600 ÷ 60 = $210 per month. The closest choice is $200 per month.

AI-written and checked against the verified answer.

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