Please use the following information to respond to the question: Will Jim, John or Joe be able to pay for their nephew's college education? How did you reach the decision? All of the information below is what you need to answer the question.

Jim's great aunt Marlene died and left him $475,000 in her will. After tax he is left with $262,000 of which he spends $100,000 on a new Tesla, saves $50,000 in a low return money market at a rate of 1.3% per year and lends the remainder to Joe at a rate of 4.5% per year for 5 years. Jow returns the principal to Jim at the end of the 5 years and Jim put the loan and the interest earned into the savings that he has in the money market.

Joe borrows money from Jim at a rate of 4.5% per year and repays it in 5 years. Joe borrowed the money to bridge the commission check he would get from his new job in 5 years per the contract of his employment. Joe's commission check is exactly the amount of the loan before the interest owed. Joe spends the loan on a used car for $10,000 and the rest he invests in a stock that pays a 3.6% dividend 4 times a year. The stock is in the private company that Joe works for and they have guaranteed the principal.

John is Joe's neighbor and has heard much about Joe's new job and the company. He has taken $77,000 out of his 401k to invest in the company. Joe's company has guaranteed the value of the stock to Joe becuase he is an employee but has not guaranteed the principal for non-employees such as John. The stock paid the dividend and it grew at a rate of 3% per year in addition to the dividend income. John expects the growth to continue in the same way in the future and anticipates holding the stock for 16 years.

Ji, Joe and John each have nephews that are 4 years old and they would like to use the cash that they have invested to pay for his college once he attends. The cost anticipated for the college if their nephew's went today is $34,000/year and is expected to grow 2% per year. They only wish to pay for a traditional 4 year college program.