The Following Steps May Be Taken to Reduce the Amount

question 27

Multiple Choice

The following steps may be taken to reduce the amount of the family's expected contribution:
I. Increase parents' assets and reduce their after-tax income
II. Save money in child's name
III. Decrease investment in 401k) plans
The correct answer is:

• A) I only
• B) II only
• C) II and III
• D) I and III

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Definitions:

Annuity

A series of payments of a fixed amount for a specified number of periods.

Supplement Income

Additional income earned beyond the primary source of income, often used to meet extra expenses or save for future needs.

Going Rate

The current average or standard price for goods or services in a particular market or industry.

Lottery

A form of gambling involving the drawing of numbers at random for a prize.