Answer :
To calculate the net price of a school after receiving a financial aid offer, Johnny needs to determine the total cost he will have to pay out of pocket after subtracting the financial aid he received. The financial aid typically includes grants and scholarships, which do not need to be repaid.
Let's breakdown the options provided:
1. Option a: Sticker Price - (Grants + Scholarships + Work-Study)
- Work-Study is a program that allows students to work part-time while attending school, and it provides them with funds to help pay for educational expenses. However, since work-study funds need to be earned through work, they are not immediately subtracted from the sticker price. Therefore, this formula isn't accurate for calculating the net price Johnny needs right now without considering future earnings.
2. Option b: Sticker Price - (Grants + Scholarships + Loans)
- Loans are borrowed money that must be repaid with interest. While it helps cover upfront costs, it doesn't reduce the total amount Johnny is responsible for. For the net price calculation, loans should not be subtracted because Johnny will eventually need to pay them back.
3. Option c: Sticker Price - (Grants + Scholarships)
- This option takes into account only grants and scholarships, which are outright financial aids that Johnny does not need to repay. These amounts directly reduce the sticker price of the school, giving Johnny the actual net price he needs to pay out of pocket.
4. Option d: Sticker Price - (Savings + Grants)
- This formula incorrectly includes "Savings" as part of the financial aid. Savings are not a form of aid the school offers but rather Johnny's personal money. Thus, this option doesn't accurately reflect the reduction in tuition costs due to the school's financial aid.
Considering these points, the correct formula that Johnny should use to calculate the net price of the school after receiving the financial aid offer is:
O c. Sticker Price - (Grants + Scholarships)
Let's breakdown the options provided:
1. Option a: Sticker Price - (Grants + Scholarships + Work-Study)
- Work-Study is a program that allows students to work part-time while attending school, and it provides them with funds to help pay for educational expenses. However, since work-study funds need to be earned through work, they are not immediately subtracted from the sticker price. Therefore, this formula isn't accurate for calculating the net price Johnny needs right now without considering future earnings.
2. Option b: Sticker Price - (Grants + Scholarships + Loans)
- Loans are borrowed money that must be repaid with interest. While it helps cover upfront costs, it doesn't reduce the total amount Johnny is responsible for. For the net price calculation, loans should not be subtracted because Johnny will eventually need to pay them back.
3. Option c: Sticker Price - (Grants + Scholarships)
- This option takes into account only grants and scholarships, which are outright financial aids that Johnny does not need to repay. These amounts directly reduce the sticker price of the school, giving Johnny the actual net price he needs to pay out of pocket.
4. Option d: Sticker Price - (Savings + Grants)
- This formula incorrectly includes "Savings" as part of the financial aid. Savings are not a form of aid the school offers but rather Johnny's personal money. Thus, this option doesn't accurately reflect the reduction in tuition costs due to the school's financial aid.
Considering these points, the correct formula that Johnny should use to calculate the net price of the school after receiving the financial aid offer is:
O c. Sticker Price - (Grants + Scholarships)
