Answer to Question #101343 in Financial Math for Taylor

Question

In the next 10 months Colin wants to save $900 for his vacation. He plans to save $75 each of the first 8 months. How much must he save each of the last 2 months in order to meet his goal if he saves the same amount each month?

Answer 1

Given,

In the first $8 \space$months, Colin saves $\$75$ each month.

The amount saved in 8 months = $8 \times \$75 = \$600$

Amount Colon saved in 10 months

$$=\$900$$

Colin's savings in the last two months

$$=\$900 - \$600 = \$300$$

To reach his goal, Amount needed to save in each month will be

$$=\frac {\$300}{2} = \$150$$

Answer: $\$150$.