Rick M. answered • 11/24/15

Tutor

4.5
(2)
MD/ PhD Student, Biomedical Engineering

There is a simple way to approach this problem:

First - write down all your given values

Second - reason it out in words, put down stuff you already know that might be related

Third - solve!

First: Given Values

The total amount needed to be saved: $674.72

Total time: 1 year

Estimated savings per month: $40.00

Second: What do I already know?

If there's one year then I know there are 12 months in that year. They told me I'm saving $40.00/month so I should probably find out how much I'm saving in 1 year if I save $40.00/month. I can do that by multiplying ($40.00/month)(12 months)

Third: Solve!

($40/month)*(12 months) = $480/ year

This is a reasonable but inaccurate estimate since it's close but not close enough to what she actually needs to save. If she wants to save $674.72 in 12 months then we can find that amount by dividing the total amount into 12 pieces (each piece is a month) which gives us the amount required in 1 piece which is representative of 1 month.

So ($674.72) / (12 months) = $56.23/ month, rounded to the nearest hundredth of a decimal place.