You win $100 in a basketball 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 the $100 now?
By spending the $100, you could be giving up the chance to have a bit of money in your bank account in the future. However, you could be able to buy whatever you want with it that could benefit you or make you happy.
