MACROECONOMICS

A two-year community college offers two payment options for incoming students. One is to pay $20,000 lump sum when they first enroll. The other is to pay $10,000 when they first enroll and pay $11,000 at the beginning of the second year. Students should choose the first option when the interest rate is:
	A.) greater than 10%.
	B.) 10%.
	C.) less than 10%.
	D.) higher than the estimated inflation rate in the next two years. *I know the correct answer is C, but I was hoping to gain additional insight as to WHY that is the correct answer.