Question

Janie spends 10 hours per week making flower arrangements. Yesterday she was offered an after-school job by the pet store in the mall, which she often visits to look at the animals. If she took this job working ten hours a week, she could make $2,500 per year. She has $600 invested in her flowers, and she could have that money earning interest at one percent per year in a savings account. What is Janie's total opportunity cost of staying in business for herself this year?

Answer 1

£765.4333323 ($987.8177773) because you must find compound interest.

Answer 2

The total opportunity cost for Janie to stay in business for herself this year is $2,500.

What is Opportunity Cost?

This refers to the foregone alternatives when a choice is made from a list of available choices.

Hence, we can see that based on the fact that Janie spends 10 hours per week making flower arrangements and she has a job offer that could give her $2,500 per year.

Therefore, the opportunity cost, if she stays in business for herself this year, is $2,500 because this is what she would forego if she decides to stay in her business this year.

Read more about opportunity costs here:

https://brainly.com/question/8846809

#SPJ2