Carly will be going to college in 3 years. She anticipates that she will need $12,000 to pay for the first year. She currently has $2,900 in a savings account. Without including any interest earned, what is a reasonable estimate of the amount Carly needs to deposit into the savings account per month over the next 3 years to be able to pay for her first year of college?
Carly needs $12,000 and already has $2,900, so she must save $12,000 − $2,900 = $9,100. Three years is 36 months, and $9,100 ÷ 36 is about $253 per month. The reasonable estimate is $250 per month, choice B.
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