Suppose the University Offers the Following Payment Plan: Either You

True/False

Suppose the university offers the following payment plan: Either you pay $80,000 when enrolling as a freshman or you pay $25,000 at the beginning of your freshman year and $25,000 at the beginning of every year for the next three years. If the annual interest rate is 5%, then you should take option 1 and pay $80,000 at the beginning of your first year.