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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 28 Mar 2011, 00:40
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B
C
D
E

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Question Stats:

81% (01:00) correct 19% (00:47) wrong based on 86 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.
[Reveal] Spoiler: OA
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Re: CR question 2 [#permalink] New post 28 Mar 2011, 01:33
Easy B. It gives a compelling reason why Parents should not invest in the said program.
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Re: CR question 2 [#permalink] New post 28 Mar 2011, 20:23
Easy.. Choice B..
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Re: CR question 2 [#permalink] New post 29 Mar 2011, 07:14
Remember when reading the answer choices that the question is, which is the most appropriate reason for a parent NOT to participate in the program

(A) The parents are unsure about which public college in the state the child will attend.

A...a is tempting (definitely was for me) because the reader thinks that the child could attend ANY state in the country, but closer examination reveals that the statement says "which public collegeIN THE STATE the child will attend. So the statement tells us that the child is going to reside in state no matter what and the program WILL benefit the parents...so A is out

(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.


B...B tells us that if parents put their funds in an account today, then the amount will be greater than the total cost of tuition for any of the public colleges when the child enrolls...This read to me as...WHY SHOULD I GIVE MY MONEY TO YOU WHEN I CAN MAKE MORE BY MYSELF...essentially, there is no incentive for parents to pay for their child's tuition at current rates because they will have an ample amount if they put their money in an interest account and take it out in the future

(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


C..This is a reason TO invest...if tuition is expected to go up, then I would want to pay NOW at CURRENT PRICES.

(D) Some of the state’s public colleges are contemplating large increases in tuition next year.

D...not sure what it's called, but D uses the good old trick assuming that "if they are doing something, then we are gonna do it too". We can't assume this. So it's out

(E) The prepayment plan would not cover the cost of room and board at any of the state’s public
colleges.


E this one is pure bait for college students or graduates, while we are all worried about room and board, and know that it comes in the overall package in college, room and board has no effect on tuition costs..so its out


Essentially, try to explain what the statements are saying in your own words. Sometimes I think that I think that I'm with an author and 5 friends, and I'm cracking jokes about how dumb their arguments are...

try it, making fun of people usually revolves around destroying arguments

tl;dr B IMO
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Re: A program instituted in a particular state allows parents to [#permalink] New post 30 Apr 2012, 08:38
+1 B

If the interest acount can generate a final amount greater than the amount that will be paid by the program, the interest acount will be useful not only to pay the college but also other things.
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Re: A program instituted in a particular state allows parents to   [#permalink] 30 Apr 2012, 08:38
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