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2 years ago

Suppose, you have $20,000 in your account. You receive a monthly

Business

1 answer:

Setler [38]2 years ago

3 0

Answer:

According to the data provided the opportunity costs is detailed below:

Initial Balance $20,000

Monthly interst $200

Investment $500

________________________

The Opportunity cost is $500

Explanation:

The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:

1. Spending the money

2. Save the money

3. Invest the money

Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.

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Pavlova-9 [17]

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2 years ago

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Answer:

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Explanation:

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