Answers2027 Ignite Financial Literacy-Personal Finance - EL3403Planning for the Cost of CollegeQuestion 23
23
QuizMultiple Choice

Planning for the Cost of College

Question 23 • 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.

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Planning for the Cost of College