Answer to Question #310328 in Microeconomics for Ahmed

Question #310328

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 percent interest. What is the opportunity cost of spending the $100 now?

Expert's answer

"OC=100(1-\\frac{5\\%}{100\\%})=95" $.

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