Answer to Question #145494 in Microeconomics for lorelie

Question

You win 10,000.00 in a basket ball pool . You have a choice between spending the money now and putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending in 10,000.00 now?

Answer 1

The opportunity cost of spending in 10,000.00 now is: $10,000×1.05 = 10,500.$