College Savings Project

Kim·

Finance

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At a Glance

SubjectFinance

Original Prompt

create a project for 8th grade Algebra I students studying exponential growth/decay and compound interest on the following: students will be researching tuition for a college that they are interested in attending. they will calculate the cost in 4 years at the assumption that tuition increases on average by 3% each year. They will then deduct the average academic scholarship of 15,750 per year. Then calculate the total cost for attending for 4 years. students will then be told that their parent...

This resource focuses on the financial aspects of attending college, specifically how to apply exponential growth and compound interest formulas to estimate future tuition costs and analyze savings plans. Students will research current college tuition rates and utilize mathematical formulas to project future costs, considering a growth rate of 3% per year over four years. The resource includes sections on calculating the impact of scholarships on out-of-pocket costs, understanding the difference between simple and compound interest, and practicing calculations related to savings accounts. Students are also guided to reflect on their financial planning, assess funding gaps, and explore strategies for reducing college costs or enhancing savings, encouraging a comprehensive approach to managing educational expenses.