Juan is determining the cost for his first year in college. After researching, he figures that the total cost for tuition and fees for the year will be about $43,800. There is an additional boarding cost of $4,132. Juan has received an $8,000 scholarship for his freshman year. In addition, Juan's parents have saved $84,000 toward his continued education, and his grandmother will contribute an additional $5,000 as a gift each year. The parents intend to distribute the savings equally for each year at the 4 year college. If Juan uses the yearly portion of his parents' savings, scholarship money, and his grandmother's gift, what is the remaining balance for Juan to pay for his freshman year?A) $13,932 B) $18,250C) $21,750 D) $9,800

Accepted Solution

First let’s find out what he owes per year. That’s tuition plus boarding costs minus the scholarship: 43,800 + 4132 = 47, 932.

From this we subtract the scholarship (8000) and the amount his grandma will put in (5,000) for the freshman year. 47,932 - 13,000 = 34,932

His parents saved 84,000 But are splitting it evenly over four years so that’s 84,000 / 4 = 21,000 per year.

So for his freshman year that’s 34,932- 21,000 = 13,932 that he has left to pay.

His remaining balance is 13,932