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?

Question

Examsnet · Accepted Answer

Correct Answer is : 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 enrolls.

GMAT Verbal Reasoning Practice Test 4