To determine the minimum monthly amount that Giselle should deposit in her savings account to cover her contribution for one year of college, let's break down the costs and calculations step-by-step.
1. Calculate the Total Cost for One Year of College:
Add up the costs in each category to find the total estimated cost for one year.
[tex]\[
\text{Total Cost} = \$12,450 \ (\text{tuition}) + \$10,125 \ (\text{room and board}) + \$2,600 \ (\text{transportation}) + \$2,250 \ (\text{books and fees}) + \$1,250 \ (\text{other})
\][/tex]
Adding these amounts together:
[tex]\[
\$12,450 + \$10,125 + \$2,600 + \$2,250 + \$1,250 = \$28,675
\][/tex]
2. Subtract the Grant Amount:
Giselle predicts she will receive a grant of \[tex]$4,000. Subtract this grant from the total cost to find the net cost that she will need to cover with her savings.
\[
\text{Net Cost} = \$[/tex]28,675 - \[tex]$4,000 = \$[/tex]24,675
\]
3. Determine the Total Number of Months for Savings:
Since Giselle has 4 years to save, we need to find the total number of months in 4 years.
[tex]\[
\text{Total Months} = 4 \ (\text{years}) \times 12 \ (\text{months per year}) = 48 \ (\text{months})
\][/tex]
4. Calculate the Minimum Monthly Saving:
Divide the net cost by the total number of months to determine the monthly savings amount.
[tex]\[
\text{Monthly Saving} = \frac{\text{Net Cost}}{\text{Total Months}} = \frac{\$24,675}{48 \ (\text{months})} = \$514.0625
\][/tex]
Given the multiple-choice options:
- \[tex]$400
- \$[/tex]500
- \[tex]$600
- \$[/tex]700
The calculated monthly saving of approximately \[tex]$514.06 suggests that Giselle should round up to ensure she has enough savings. Therefore, the closest and suitable option is:
\[
\$[/tex]600
\]
So, Giselle should deposit a minimum of \$600 per month in her interest-bearing savings account to comfortably cover her contribution for one year of college.
