University tuition and fees can be paid by using one of two plans. Early-bird: Pay total amount due 1 year in advance and get a 10% discount. On-time: Pay total amount due when classes start. The cost of tuition and fees is $10,000 per year.
(a) How much is paid in the early-bird plan?
(b) What is the equivalent amount of the savings compared to the on-time payment at the time that the on-time payment is made?