Question

Suppose that you have received $300 as a birthday gift. You can spend it today or you can put the money in a bank account for a year and earn 5 percent interest. The opportunity cost of spending the money today, in terms of what you could have after one year, is
a. $0.

b. $15.

c. $305.

d. $315.

Answer 1

After one year you will be able to get 305 extra dollars then what you have put in hope this helps you