Callie is comparing the costs of two options for her college education. Option A: Complete the first two years of schooling at a community college and then transfer to a university.
Option B: Complete all four years of schooling at the university.
Community College Financial Analysis
Costs per Year
Financial Aid Package per Year
Tuition & Fees
Scholarships & Grants
$2,900
$800
Room & Board

$1,250

University Financial Analysis
Costs per Year
Financial Aid Package per Year
Tuition & Fees
Scholarships & Grants
$9,500
$10,000
Room & Board
Work-Study
$11,500
$2,000

Which statement about the cost of the options is true?
She would save $1,000 by choosing option B.
She would save $5,650 by choosing option A.
She would save $11,200 by choosing option B.
She would save $11,300 by choosing option A.
Mark this and return

Explanation:

She will choose option A.

Step-by-step explanation:

Option A : 2 Years in Community college and 2 years in University

Option B : 4 Years in University

Per year cost in Community college = $2900 + $800 +$1250 = $4950

Per year cost for University = $9500+$10000 + $11500 + 2000 = $32000

Total cost for 4 years as per option A = 2 ( Community College) + 2(University)

                                                              = 2( $4950) + 2( $32000)

                                                               = $ 73900

Total cost for 4 years as per option B = 4(University)

                                                              = 4( $32000)

                                                               = $ 128000

Hence, she will choose option A due to minimum cost.

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