Respuesta :
The opportunity cost is $50.
What is opportunity cost?
- Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options.
- Opportunity costs are by definition invisible, making it simple to ignore them.
- Making smarter decisions requires an understanding of the possible opportunities lost when a company or person selects one investment over another.
- The determination of a company's capital structure involves opportunity cost analysis in a significant way.
- To pay lenders and shareholders for the risk of their investments, a corporation must incur costs when issuing both debt and equity capital, but each has an opportunity cost as well.
Given that, Cash which we have is $500.
Also, the interest rate is 10%.
Therefore, the opportunity cost becomes 10% of the cash, that is,
500 × [tex]\frac{10}{100}[/tex] = $50.
Know more about opportunity cost with the help of the given link:
https://brainly.com/question/13036997
#SPJ4
