A program instituted in a particular state allows parents to prepay their children's future college tuition at current rates. The program then pays the tuition annually for the child at any of the state's public colleges in which the child enrolls. Parents should participate in the program as a means of decreasing the cost for their children's college education.Which of the following, if true, is the most appropriate reason for parents NOT to participate in the program?A) The parents are unsure about which public college in the state the child will attendB) The amount of money accumulated by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of tuition for any of the public colleges when the child enrollsC) The annual cost of tuition at the state's public colleges is expected to increase at a faster rate than the annual increase in the cost of livingD) Some of the state's public colleges are contemplating large increases in tuition next yearE) The prepayment plan would not cover the cost of room and board at any of the state's public colleges.

A new state-sponsored tax law aimed at increasing the state’s college attendance rate gives local public universities tax incentives to encourage acceptance of a greater percentage of applicants from within the state. Legislators supporting the new law believe that it will not only allow more students from the state to obtain further education, but also provide a strong financial boost to in-state universities. Which of the following, if true, would provide the strongest critique of the legislators’ proposal?(1 Point)Public universities receive the majority of their funding through state-sponsored initiatives.Public universities are generally less expensive than private universities.Many college applicants find that relocating to a new state is the single largest obstacle to attending college.Public universities feel that having a broader applicant pool is more financially beneficial than the incentives provided under the new law.

Suppose you have a new baby and want to start saving for college. The average tuition, fees, and room and board charges at a local four-year institution totaled $26734 the year the child was born. Assuming a 2.3% annual increase to school costs, this cost will rise to $40255.51 when your child begins college in 18 years.How much do you need to invest now in an investment earning 4% compounded daily to be able to pay for your child's schooling?You will need to invest $

A parent saving for their child’s college tuition deposits $1,750 into an account that earns % interest per year. The money is left in the account for 2 years. Find the maturity value.

A plan that allows a family to pre-purchase one part of a college's cost of attendance is called a _____.A.529 checking accountB.529 college savings planC.529 planD.529 prepaid tuition plan

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 7% p.a.. The parents deposit $2000 on their daughter's first birthday and plan to increase the size of their deposits by 5% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to:a.None of them.b.$67,998.c.$97,331.d.$103,063.e.$42,825.