Elina Is Contemplating Doing a Degree

Multiple Choice

Elina is contemplating doing a degree.If she does she will incur university fees of $20,000 in her first year and have to spend $5,000 on textbooks and university supplies, expenses that she would not have otherwise incurred.To help pay for these fees Elina will have to cash out a term deposit of $20,000 from which she earned interest of 10 per cent per annum.What is the opportunity cost of Elina attending university for a year?

A) $20,000
B) $27,000
C) $25,000
D) $22,000
E) $7,000