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_______.

Respuesta :

Answer:

The opportunity cost would be $315 including an interest of $15

Explanation:

FV = 300(1.05)^1 = $315

After depositing the amount in a bank account the $300 would earn $15.