Multiple Choice
Emily is considering two mutually exclusive financial options: (i) to deposit $4 000 in her bank's savings account that pays 4.6% annual interest, or (ii) to purchase a $4 000 one-year guaranteed investment certificate with a monthly interest rate of 0.3%. From an opportunity cost standpoint, by making the decision to deposit $4 000 in the bank account, Emily will
A) gain $37.6 by the end of the year.
B) lose $37.6 by the end of the year.
C) gain $57.6 by the end of the year.
D) lose $57.6 by the end of the year.
E) make zero economic profit.
Correct Answer:
Verified
Correct Answer:
Verified
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