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. Assume the cost of your tuition is $10,000 and the interest rate over the academic year is 10 percent. When will you choose to pay? O You will pay now if you are borrowing, but you should pay at the end of the academic year if you are using your own money. You will avoid $1,000 in interest charges if you use your own money, and you gain interest charges if you borrow $10,000. O You will pay at the end of the academic year if you are borrowing, but you should pay now if you are using your own money. This will save you $1,000 in interest charges, and you avoid interest charges if you borrow $10,000 later. O You will pay now in both cases because you save $1,000 in interest charges whether you borrow $10,000 now or use the money you already have in an interest-bearing account. O You will pay at the end of the academic year in both cases because you can earn $1,000 in interest on $10,000 whether you borrow $10,000 now or keep the money you already have in an interest-bearing account.

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 elther already have the money in an interest bearing account or will have to borrow it. Assume the cost of your tultion is $10,000 and the interest rate over the academic year is 10 percent. When will you choose to pay? You will pay now if you are borrowing, but you should pay at the end of the academic year if you are using your own money You will avoid $1,000 in interest charges if you use your own money, and you gain interest charges if you borrow $10,000. You will pay at the end of the academic year if you are borrowing, but you should pay now if you are using your own money. This will save you $1,000 in interest charges, and you avoid interest charges if you borrow $10,000 later. You will pay now in both cases because you save $1,000 in interest charges whether you borrow $10.000 now or use the money you already have in an interest-bearing account. You will pay at the end of the academic year in both cases because you can earn $1,000 in interest on $10.000 whether you borrow $10,000 now or keep the money you already have in an interest-bearing account