Your sending your daughter to a prestigious private college starting next year. She will attend for four years. The current cost for one year is $60,000, but is expected to rise 2% per year over the next 10 years. The school has a tuition stabilization plan whereby you can pay for the entire four years by writing a single check for $240,000 when your daughter begins college. Otherwise, you simply pay each years tuition as you go. If your investments earn 6% per year, should you pay as you go or take the tuition stabilization plan? How much do you save in present value terms by taking the cheaper alternative?