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    Question

    As per one of the welfare policies of the government,

    parents are allowed to prepay their children's future college tuition at current rates. Once the payment has been made, it becomes the government's responsibility to pay the tuition fees annually for the child at any of the government's public colleges in which the child enrolls. Thus, if parents want to decrease the cost for their children's college education, they should subscribe to this policy.Which of the following, if true, is the most appropriate reason for parents to not subscribe to this policy?
    A 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. Correct Answer Incorrect Answer
    B Some of the government's public colleges are contemplating large increases in tuition next year. Correct Answer Incorrect Answer
    C The parents are unsure about which pubic college in the government the child will attend. Correct Answer Incorrect Answer
    D The prepayment plan would not cover the cost of room and board at any of the state's public colleges. Correct Answer Incorrect Answer
    E The annual cost of tuition at the government's pubic colleges is expected to increase at a faster rate than the annual increase in the cost of living. Correct Answer Incorrect Answer

    Solution

    As per the argument, depositing the tuition fees for the children today with the government would help parents in cutting down the costs of their children' education as the government would be paying the tuition fees in the future. This policy would work only if there is no other way to make the amount of tuition fees grow at the same or a higher rate with the parents and in such a case, subscribing to the policy would become a less lucrative option. Option Therefore says that 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, and thus, gives a similar alterative making the policy not the best option to park money in.Thus, option 1 is the right

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