Eric wants to pay for one year of college that costs $19,500. If he can save at most $325 per month, how many months must he save to cover one year?

Eric wants to pay for one year of college that costs $19,500. If he can save at most $325 per month, how many months must he save to cover one year?

• A. 55 months
• B. 60 months
• C. 48 months
• D. 72 months

Answer: (B)

To figure out how many months Eric must save, think of the total cost as the result of saving a fixed amount each month. The total saved after N months is (monthly savings) × N. So the number of months needed is the total cost divided by the monthly saving amount. Compute 19,500 ÷ 325 = 60. That means saving 325 each month for 60 months exactly covers the cost. Since he can save at most 325 per month, this is the minimum number of months required. 60 months is 5 years of saving. If the division weren’t exact, you’d have to round up to ensure enough money is saved.

To figure out how many months Eric must save, think of the total cost as the result of saving a fixed amount each month. The total saved after N months is (monthly savings) × N. So the number of months needed is the total cost divided by the monthly saving amount.

Compute 19,500 ÷ 325 = 60. That means saving 325 each month for 60 months exactly covers the cost. Since he can save at most 325 per month, this is the minimum number of months required. 60 months is 5 years of saving. If the division weren’t exact, you’d have to round up to ensure enough money is saved.