11
QuizMultiple Choice

Planning for the Cost of College

Question 11 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

The annual tuition at a public two-year college last year was $3,200. For the new school year, Elizabeth’s first year in college, the tuition is expected to increase 5%. She saved the same amount monthly to prepare for the cost of her tuition. What is the minimum amount Elizabeth should have saved monthly during the previous year?

Answer
$
$267
$
$280
$
$308
$
$400

Explanation

First, increase last year’s tuition by 5%: $3,200 × 1.05 = $3,360. To save that amount evenly over 12 months, divide $3,360 by 12, which is $280 per month. Therefore, the minimum monthly savings is $280 (choice B).

AI-written and checked against the verified answer.

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