Since you're given the total cost per year (12,000) you multiply it by 4 so that you get the total amount for the four years. e.g. (4 x 12,000) = 480,000
Now you calculate the 75% from this amount because we want to obtain the amount of money the scholarship is worth. That is 480,000 x 75% = 360,000
or 480,000 x 0.75 = 360,000
So, the scholarship is of 360,000
