PSAT Math Multiple-Choice Question 231: Answer and Explanation

Question: 231

According to the Project on Student Debt prepared by The Institute for College Access and Success, 7 out of 10 students graduating in 2012 from a four-year college in the United States had student loan debt. The average amount borrowed per student was $29,400, which is up from $18,750 in 2004. If student debt experiences the same total percent increase over the next eight years, approximately how much will a college student graduating in 2020 owe, assuming he takes out student loans to pay for his education?

• A. $40,100
• B. $44,300
• C. $46,100
• D. $48,200

Correct Answer: C

Explanation:

C

Difficulty: Medium

Category: Problem Solving and Data Analysis/Rates, Ratios, Proportions, and Percentages

Getting to the Answer: Find the percent increase by dividing the amount of change by the original amount. Then, apply the same percent increase to the amount for 2012. The amount of increase is 29,400 - 18,750 = 10,650, so the percent increase is 10,650 ÷ 18,750 = 0.568 = 56.8% over 8 years. If the total percent increase over the next 8 years is the same, the average student who borrowed money will have loans totaling 29,400 × 1.568 = 46,099.20, or about $46,100. Choice (C) is correct.