Please help. University tuition and fees can be paid by using one of two plans.

Early-bird: Pay total amount due 1 year in advance and get a 10% discount.

On-time: Pay total amount due when classes start.

The cost of tuition and fees is $10,000 per year.

(a.) How much is paid in the early-bird plan?

Answer: $9000

(b.) What is the equivalent amount of the savings compared to the on-time payment at the time that the on-time payment is made?

Answer: ???

Please help with part (b.), thanks.

Question

Please help.  University tuition and fees can be paid by using one of two plans.

Early-bird: Pay total amount due 1 year in advance and get a 10% discount.

On-time:  Pay total amount due when classes start.

The cost of tuition and fees is $10,000 per year.

(a.) How much is paid in the early-bird plan?

Answer: $9000

(b.) What is the equivalent amount of the savings compared to the on-time payment at the time that the on-time payment is made?

Answer: ???

Please help with part (b.), thanks.

anonymous · Answer

Ok, I think it means the early-bird has to pay another 9000 by the time the on-time starts paying...

anonymous · Answer

Or maybe it just wants you to say 1000.

babyslapmafro · Answer

This is the answer:

(b) Equivalent future amount = 9000(1 + 0.10) = $9900

Savings = 10,000 – 9900 = $100

babyslapmafro · Answer

I don't understand it.

anonymous · Answer

I'm so sorry I don't know either...:,(

anonymous · Answer

bump the question up.