AnswersSNHS NV-Civics and EconomicsUnderstanding College SavingsQuestion 10
10
QuizMultiple Choice

Understanding College Savings

Question 10 • SNHS NV-Civics and Economics

Javier is considering two options for college. Option A: Complete the first two years of schooling at a community collegeand then transfer to a university.Option B: Complete all four years of schooling at the university.Community College Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$3,000$1,000Room & Board $1,000 University Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$10,000$15,000Room & BoardWork-Study$11,500$4,000Which statement about the cost of the options is true?

Answer
A
Option B will save him $1,000.
B
Option B will save him $2,000.
C
Option A will save him $14,000.
D
Option A will save him $17,500.

Explanation

Community college costs $3,000 + $1,000 = $4,000 per year, and its $1,000 in aid brings the yearly cost to $3,000. The university costs $10,000 + $11,500 = $21,500 per year; after $15,000 in scholarships and grants and $4,000 in work-study, the yearly cost is $2,500. Option A costs 2($3,000) + 2($2,500) = $11,000, while Option B costs 4($2,500) = $10,000. Therefore, Option B saves him $1,000.

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