Here is the deal: You can pay your college tuition at the beginning of the academic year or the same amount at the end of the academic year. You either already have the money in an interest-bearing account or will have to borrow it. Deal, or no deal? Explain your financial reasoning. Relate your answer to the time-value of money, present value, and future value.
Solved
Show answers
More tips
- F Food and Cooking Homemade kvass: recipe and brewing process...
- O Other What is a Disk Emulsifier and How Does it Work?...
- H Health and Medicine How to Calm Your Nerves? Expert Tips That Actually Work...
- A Animals and plants 5 Tips for Taking Care of Yews to Keep Them Green and Beautiful...
- S Sport How to wrap boxing hand wraps? Everything you need to know!...
- F Food and Cooking 10 Reasons Why You Should Avoid Giving Re-Gifts: An Informative Guide...
- F Family and Home Tender Care for Your Parquet: Is it Possible to Clean Parquet?...
- S Style and Beauty How Are Eyelash Extensions Applied? All Your Questions Answered...
- F Food and Cooking 10 Tips for Proper Sushi Consumption...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
Answers on questions: Business
- B Business What is considered workplace diversity PLEASE HELP DUE TODAY WHOEVER ANSWERS FIRST WILL GET BRAINLIEST!!!...
- B Business The recording and analysis of Financial records is called?...
- B Business PLEASE HELP ME Some studies have reported that more than 85 percent of all jobs are filled through networking—whether it be in person or virtual. How do you think job hunters and...
- B Business What does the hospitality industry contribute to an economy?...
- B Business Who stated in the 1800s that matter is made of tiny particles called atoms that are indivisible. He thought they were solid little balls that could not be broken apart? Question 3...
- B Business Shirley qualifies for federal grants and unsubsidized loans to pay for college. Which of the following strategies will help Shirley in the long run? A. paying the interest while in...
- B Business Explain the link between scarcity and each of the following: (a) choice, (b) opportunity cost, (c) the need for a rationing device, (d) competition....
- B Business Can anyone solve plz will mark brainliest...
- B Business REPRESENT OBLIGATION OF THE BUSINESS ARISING FROM ADVANCE PAYMENTS RECIEVED BEFORE GOODS OR SERVICES ARE PROVIDED TO THE COSTUMER. IN WHAT ACCOUNTING TERMS?...
- B Business What is economic system ?...
Ответ:
Deal, and the best option is to pay the same amount at the end of the academic year.
The reason for this is that if you have that amount in an interest bearing account, the money will earn interest, meaning that after paying the tuition at the end of the year, you will have the interest earned for yourself.
In other words, the present value of your money is the full value of your tuition, while the future value of your money is the value of the tuition plus the interest earned.
Besides, because the time value of money decreases as time passes, the amount you pay in tuition will represent less of your total income at then end of the academic year, than at the beginning.
Ответ:
meee this is mine <3
Explanation: