Final answer:
The total expected bills over a 5-year tenure for the three options are $25,000 for Option 1, $33,750 for Option 2, and $10,000 for Option 3.
Step-by-step explanation:
To draft a payoff table for a student's full 5-year tenure, we will calculate the total expected bill for each of the three payment options provided for funding their study programs.
- Option 1 is to pay $5,000 upfront each year. Over 5 years, this would simply be 5 times $5,000, which is $25,000.
- Option 2 is to pay $3,000 at the beginning of each year plus an additional $750 per year enrolled. Thus, each year the student pays $3,000 plus $750 multiplied by that year number. Over 5 years, this calculation would be ($3,000 + $750) + ($3,000 + $750*2) + ($3,000 + $750*3) + ($3,000 + $750*4) + ($3,000 + $750*5), which sums up to $33,750.
- Option 3 requires a payment of $2,000 per year enrolled. Over the 5 year period, the student would pay 5 times $2,000, which is $10,000.
The payoff table summarizing the bills for each option over the student's 5-year tenure is:
Option Total Cost Over 5 Years
1 $25,000
2 $33,750
3 $10,000