You have the alternative of paying for university fees today for a payment of $16,000...
50.1K
Verified Solution
Link Copied!
Question
Finance
You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $7,000 in 11 months from today and another $10,000 in exactly 24 months from today. If the interest rate is 10.1%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment?
(expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. -300.35)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
