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.

---

Definitions:

Time Orientation

An individual's attitude or preference toward past, present, or future thinking.

Long-Term Orientation

A cultural or personal perspective that values planning and investing in the future, emphasizing perseverance and deferred gratification.

Materialism

A philosophical or societal focus on physical possessions and wealth as primary values or indicators of success.

Strong Desire

A powerful urge or yearning for something, driving motivation and action towards a specific goal.