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# A program instituted in a particular state allows parents to

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Manager
Joined: 24 Jul 2010
Posts: 90
A program instituted in a particular state allows parents to [#permalink]

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28 Mar 2011, 01:40
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82% (02:02) correct 18% (00:54) wrong based on 233 sessions

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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
Manager
Joined: 10 Jul 2010
Posts: 195
Re: A program instituted in a particular state allows parents to [#permalink]

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29 Mar 2011, 08:14
2
KUDOS
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
Manager
Joined: 14 Dec 2010
Posts: 205
Location: India
Concentration: Technology, Entrepreneurship
GMAT 1: 680 Q44 V39
Re: A program instituted in a particular state allows parents to [#permalink]

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28 Mar 2011, 02:33
Easy B. It gives a compelling reason why Parents should not invest in the said program.
Manager
Joined: 06 Sep 2010
Posts: 115
Re: A program instituted in a particular state allows parents to [#permalink]

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28 Mar 2011, 21:23
Easy.. Choice B..
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Re: A program instituted in a particular state allows parents to [#permalink]

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30 Apr 2012, 09:38
+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]

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06 May 2015, 20:00
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: A program instituted in a particular state allows parents to [#permalink]

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25 Aug 2016, 08:38
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: A program instituted in a particular state allows parents to   [#permalink] 25 Aug 2016, 08:38
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