Question 7 of T0 State university tuition and fees can be paid using one of two plans. Early-bird: pay total amount due one year in advance and get 89% discount. One-time pay total amount when classes start. If the cost fo tuition and fees is $18,000 per year, and the interest rate is 6% per year, what is the equivalent amount of savings compared to when classes start, that is, 1 year later than the early-bird plan.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 7 of T0
State university tuition and fees can be paid using one of two plans. Early-bird: pay total amount due one year in advance and get 89% discount. One-time pay total amount when
classes start. If the cost fo tuition and fees is $18,000 per year, and the interest rate is 6% per year, what is the equivalent amount of savings compared to when classes start, that is,
1 year later than the early-bird plan.
Transcribed Image Text:Question 7 of T0 State university tuition and fees can be paid using one of two plans. Early-bird: pay total amount due one year in advance and get 89% discount. One-time pay total amount when classes start. If the cost fo tuition and fees is $18,000 per year, and the interest rate is 6% per year, what is the equivalent amount of savings compared to when classes start, that is, 1 year later than the early-bird plan.
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