Tara and her parents want to save at least $40,000 for college in 8 years. Which statement describes the most effective savings plan for Tara and her parents to meet their goal?

Eight years is 96 months. Depositing $450 each month adds up to $450 × 96 = $43,200, which meets the goal of saving at least $40,000. The other plans contribute less than $40,000 over eight years, so the $450 monthly deposit is the most effective plan.

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