A prestigious private high school has made available to local families

Question

A prestigious private high school has made available to local families a tuition prepayment plan to ease the burden of paying the school’s hefty tuition when a student matriculates. The plan allows parents of children under three years old to reserve a spot for their child at the school by making a payment of one-fourth of the current annual tuition for the high school. The parents then make an identical payment every year for the next 15 years, and the student’s full four-year tuition is considered paid in full, regardless of how much the regular tuition payments have risen in the intervening years.

Under which of the following circumstances would taking part in the prepayment plan NOT be advisable for parents?

A. If the tuition at the school has risen an average of 4 percent per year for the last twenty years

B. If the child in question is particularly talented at math, but the high school is more known for its advanced humanities programs than its math program

C. If the parents of the child in question are uncertain that they will reside in the state for more than 10 years

D. If the school has an arrangement with the local university whereby students can take courses at the university if they have surpassed the level of courses offered at the high school

E. If the school offers athletic scholarships to a small number of talented athletes

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rmahe11 · Answer

I feel answer should be C of this because 
A) irrelevant even if tuition fee rises there wont be any effect
B) This is highly subjective and speaks with respect to only two particular subjects which may or may not have any direct or indirect influence in fees
C) Yes if the parents shift, it can directly affect and wont be advisable for parents to take this plan because you never know the student might study in a different state or university after growing up

MS61 · Answer

Answer: C

A. If the tuition at the school has risen an average of 4 percent per year for the last twenty years -  The parents then make an identical payment every year for the next 15 years, and the student’s full four-year tuition is considered paid in full, regardless of how much the regular tuition payments have risen in the intervening years.

B. If the child in question is particularly talented at math, but the high school is more known for its advanced humanities programs than its math program -  Program is not directly related to the Prepayment plan.

C. If the parents of the child in question are uncertain that they will reside in the state for more than 10 years -  The prepayment plan requires a long-term commitment.

D. If the school has an arrangement with the local university whereby students can take courses at the university if they have surpassed the level of courses offered at the high school -  This arrangement doesn’t directly impact the prepayment plan

E. If the school offers athletic scholarships to a small number of talented athletes -  Irrelevant. prepayment plan focuses on tuition payment structure.

Shwarma · Answer

I am sorry why is E not considered...

If the kid gets a scholarship, then the tuition fee is waived correct?
Won't that mean taking part in the pre-payment plan is not advisable
(yes, if a kid Is < 3 you cannot say if he will be an athlete)

But wrt Option C- it can be argued that the student can be put in the high school boarding facility right?

rmahe11 · Answer

I feel this number is very debatable and a small subset. It may or may not be one of the reasons

whatsarc · Answer

How can I delete this comment?

JenAgg · Answer

I think the answer is C

Shwarma  With option E, it will be difficult to determine whether the kid is talented enough to be considered for the scholarship. Let's say it takes at least 3 years for the parents to do that, they won't be eligible for the prepayment plan as the kid would be over 3 years old.

Moreover the passage doesn't mention anything about refunds to parents in cases like this.

Posted from my mobile device

Bunuel · Answer

Official Explanation

If the parents are uncertain that they will be in the state in 10 years, then it does not make sense for them to prepay tuition for a high school that the child may not be able to attend.

Answer A  says nothing about the future rate of tuition increases, and does not provide other relevant financial information, such as the rate of inflation and the rate of return that the parents could get if the same amount of money were invested elsewhere.

Answer B  is a reason for the child to perhaps choose another school, although the mathematics program might still be better than all local alternatives; in any event,  B  does not relate to the advisability of taking part in the prepayment plan.

Answer E  is incorrect because it would be inadvisable for parents to make financial decisions based on the assumption that their child would win an athletic scholarship.

ANSWER: C

A prestigious private high school has made available to local families

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