Dustin estimates annual cost of college at $7,721 and expects to receive $1,930 in grants. What is his estimated annual contribution after grants?

• A. 7,721
• B. 5,000
• C. 5,791
• D. 6,500

Answer: (C)

The key idea is to subtract any gift aid from the total cost to find what you still need to cover. Dustin’s total annual cost is 7,721, and he expects 1,930 in grants, which reduce that cost. So 7,721 minus 1,930 equals 5,791. That is the estimated annual contribution after grants.

Grants are gift aid and don’t need to be repaid, so they lower the amount you must pay; that’s why you subtract them from the total cost. The other numbers would only make sense if the grant amount were different or if no grant were received. Here the correct calculation uses the given grant of 1,930, leading to 5,791.