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7. You would have enough moncy today to pay your next year's tuition at Stevens if it stayed the same as this year, but you
7. You would have enough moncy today to pay your next year's tuition at Stevens if it stayed the same as this year, but you know that college tuition increases in line with inflation. The best annual interest rate you can get for cash today is 5.5% on a conventional 1-year bank CD, and 0.25% on an "inflation-plus" 1-year bank CD. Inflation has ranged between 5.0% and 5.25% in recent years, and the S\&P 500 stock index has retumed more than 8% annually since 2007 . What would be the best way to invest your money today to ensure you can pay for your next year at Stevens? A) A conventional 1-year bank CD B) An S\&P 500 Exchange-Traded Fund (ETF) C) An "inflation-plus" 1-year bank CD D) A no-interest checking aocount E) A 5-year Treasury-Inflation Protected Security (TIPS) bond
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