Answers 2027 Ignite Financial Literacy-Personal Finance - EL3403 Planning for the Cost of College — Unit testQuestion 15

15

QuizMultiple Choice

Planning for the Cost of College — Unit test

Question 15 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

This year, the annual tuition at a public four-year university is $5,290. Next year when Jarrod attends his first year, the tuition is expected to increase 4.5%. Jarrod has 1 year to save the amount of money equal to the tuition for his first year. What is the approximate minimum amount Jarrod should save monthly?

Answer

A

$441

B

$461

C

$553

D

$639

Explanation

First estimate next year’s tuition by increasing $5,290 by 4.5%: $5,290 × 1.045 = $5,528.05. Divide that amount by 12 months: $5,528.05 ÷ 12 ≈ $460.67. Rounded to the nearest dollar, Jarrod should save about $461 per month, choice B.

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