contestada

You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5% interest. Which of the following is the opportunity cost of spending $100 now?

Respuesta :

hyderali230

Answer:

$5

Explanation:

Choices under consideration:

1. Spend $100 now

2. Putting $100 in a bank account that pays 5% interest.

Opportunity Cost for spending $100 now = Interest Earned from bank account

Opportunity Cost for spending $100 now = $100 x 5%

Opportunity Cost for spending $100 now = $5

So the opportunity cost for spending $100 now rather keeping that in a bank account that pays 5% interest is $5.

Otras preguntas