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A program instituted in a particular state allows parents to

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A program instituted in a particular state allows parents to [#permalink] New post 05 Oct 2010, 04:55
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B
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64% (01:33) correct 36% (01:17) wrong based on 33 sessions
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 pubic college in the state the child will attend.
B. 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 pubic colleges when the child enrolls.
C. The annual cost of tuition at the state's pubic colleges is expected to increase at a faster rate than the annual increase in the cost of living
D. Some of the state's public colleges are contemplating large increases in tuition next year.
E. The prepayment plan would not cover the cost of room and board at any of the state's public colleges.
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Re: GMAT Critical Reasoning Questions.......... [#permalink] New post 05 Oct 2010, 06:23
Clear B

conclusion: parents should participate to reduce the cost for their children's education
Reasoning: pre-paying the tuition now then the fund will prepay annually when the children goes to school

Answer choice B clearly says if they parents invest the same money in interest bearing account the amount money accumulated will be greater.
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Re: GMAT Critical Reasoning Questions.......... [#permalink] New post 05 Oct 2010, 22:06
B for me
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Re: GMAT Critical Reasoning Questions.......... [#permalink] New post 18 May 2011, 01:58
B it is where total amount paid by parents = principal + interest.
Hence more than the actual cost.
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Re: GMAT Critical Reasoning Questions..........   [#permalink] 18 May 2011, 01:58
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