What is the monthly saving amount in Iliza's plan?

What is the monthly saving amount in Iliza's plan?

• A. $450
• B. $550
• C. $500
• D. $600

Answer: (B)

The key idea is to spread the total savings goal evenly over the number of months in the plan. You divide the total amount Iliza wants to have saved by the number of months she plans to save, assuming she contributes the same amount each month and there’s no interest or other changes. If the goal is to have $6,600 saved after 12 months, the monthly saving is 6,600 divided by 12, which equals 550. So Iliza would need to set aside $550 each month. If there were interest or other sources of money affecting the plan, the calculation would be adjusted accordingly, but with a steady, no-interest saving setup, the monthly amount is simply the total goal divided by the number of months.

The key idea is to spread the total savings goal evenly over the number of months in the plan. You divide the total amount Iliza wants to have saved by the number of months she plans to save, assuming she contributes the same amount each month and there’s no interest or other changes.

If the goal is to have $6,600 saved after 12 months, the monthly saving is 6,600 divided by 12, which equals 550. So Iliza would need to set aside $550 each month.

If there were interest or other sources of money affecting the plan, the calculation would be adjusted accordingly, but with a steady, no-interest saving setup, the monthly amount is simply the total goal divided by the number of months.