Answers2027 Ignite Financial Literacy-Personal Finance - EL3403Planning for the Cost of CollegeQuestion 22
22
QuizMultiple Choice

Planning for the Cost of College

Question 22 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

The total estimated cost of attending a public two-year college in Hasani’s home town last year was $2,265. The cost of attending the college is expected to increase 5% annually. Hasani plans to enter the college this year and attend for 2 years. Which is the best estimate for the total cost Hasani will pay for only his second year?

Answer
A
$2,270.66
B
$2,275.00
C
$2,491.50
D
$2,497.16

Explanation

Hasani’s second year is two years after last year, so increase the $2,265 cost by 5% twice: $2,265 × 1.05² = $2,497.1625. Rounded to the nearest cent, the estimated cost for only his second year is $2,497.16, choice D.

AI-written and checked against the verified answer.

Previous
Next

More from this Course

Quiz
40 verified answers

Taxes

Quiz
11 verified answers

Taxes

Quiz
10 verified answers

Planning for the Cost of College