Lucky Louie Is Considering a NOW Account That Requires a $1500

Multiple Choice

Lucky Louie is considering a NOW account that requires a $1500 minimum balance and pays .5% interest. What would be the opportunity cost if Louie needs to withdraw the required minimum balance from a savings account paying 2% interest? Compute the opportunity cost for one year.

A) $10
B) $22.50
C) $25
D) $35