Respuesta :
The best option for saving for college that is listed is for Tara and her parents to make deposits of $450 every month into a college savings account. Saving monthly over yearly is usually a better option because it's easier to break down monthly payments and budget for it rather than remembering once a year to put money in a college savings fund. If you need $40,000 at the end of 8 years, to find the amount you should deposit monthly goes as follows:
Take the amount of years and multiply it by 12 months in a year, (8)(12) = 96. There are 96 months between now and needing the money for college. To then find the amount to save take 96 and divide it by $40,000, the total is $417, so if they only saved $300, they would not have enough therefor saving $450 allows for the money to be there by the 8 year mark.
Effective saving is the way in which one invests money or puts the monies in such avenues or places where the saved principle amount increases within the time frame specified or desired.
In the given case the best avenue for the most effective saving plan for meeting their goal is:
Tara and her parents to make deposits of $450 every month into a college savings account.
Reason:
This option is most effective because saving in monthly basis is more easier than yearly saving, this does not affect the yearly or monthly budget of her parents.
The mathematical reason for this option is:
- For saving $40,000 in 8 years. The yearly saving must be $5,000 that is derived from the division of $40,000 and 8years.
- To reduce the burden the yearly amount is distributed in monthly, it will be derived as $417, if rounded off it will be $450 each month. It is division of $5,000 by 12months.
Therefore, saving $450 each month is the most effective way for saving and meeting goals.
For more information of effective savings, refer to the link:
https://brainly.com/question/24183785
