1. Gavin wants to attend a certain college. He estimates that the cost to attend the first year will be $16,700. Gavin's family has already saved $7,170 and plans to deposit $250 each month.
a. How much additional money will the family save after another 3 years?
b. Will the family have enough saved after another 3 years to cover the cost for at least the first year of college?
2. Arianna needs to save $8,500 over the next 3 years to cover the costs for her first year of college. She devises the periodic savings plan shown. Devise an alternate periodic savings plan with a weekly deposit to save $8,500 in 5 years. Round to the nearest cent.
3. To start saving for college, Tyler devised two periodic savings plans with monthly deposits, as shown. What is an advantage of each plan?
4. Aiden has already saved $600 toward his first year of college. He devises a periodic savings plan with a weekly deposit to save $7,500 in 4 years, as shown. How many years of weekly deposits does the alternative plan need to save $7,000? Round to the nearest year.
5. Sophia estimates that the cost to attend the first year of college will be $18,800. Sophia's family has already saved $8,840. The family plans to use a periodic savings plan over the next 6 years to save enough for at least the first year of college. The family is considering the two plans shown.
Plan A Deposit $32 per week |
Plan B Deposit $144 per month |
With which plan would Sophia's family save a greater amount over the next 6 years? How much more?
6. Writing Caleb wants to attend a certain college in 3 years. He estimates that the cost to attend the first year will be $17,600. Caleb's family has already saved $5,100. The family devises a periodic savings plan to cover the cost for at least the first year. The family plans to deposit $70 each week for the next 3 years.
a. Will the family have enough saved in 3 years to cover the cost for at least the first year of college?
b. Describe some reasons why a family might prefer a plan with weekly deposits and some reasons why a family might prefer a plan with monthly deposits.