Use the Information for the Question(s)below

question 25

Multiple Choice

Use the information for the question(s) below.
Suppose that a young couple has just had their first baby,a daughter,and they wish to ensure that enough money will be available to pay for her college education.Currently,college tuition,books,fees,and other costs,average $12,500 per year.On average,tuition and other costs have historically increased at a rate of 4% per year.
-Assuming that college costs continue to increase an average of 4% per year and that all her college savings are invested in an account paying 7% interest,then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to:

• A)$97,110.
• B)$107,532.
• C)$101,291.
• D)$50,000.

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Definitions:

Intuition

The ability to understand something immediately, without the need for conscious reasoning.

Cognitive Tasks

Activities or exercises that require mental effort and are used to assess or improve cognitive functions.

Brain Activity

The functioning of the brain involving electrical, chemical, and neuronal actions to process information, control bodily functions, and enable consciousness.

Sociobiologists

Scientists who study the biological basis of social behavior in animals and humans, emphasizing the role of evolutionary processes.