Scenario 13-1 Joe Wants to Start His Own Business,which Will Require That

Multiple Choice

Scenario 13-1
Joe wants to start his own business,which will require that he purchase a factory that costs $400,000.Joe currently has $500,000 in the bank earning 3 percent interest per year.
-Refer to Scenario 13-1.Suppose Joe purchases the factory using $200,000 of his own money and $200,000 borrowed from a bank at an interest rate of 6 percent.What is Joe's annual opportunity cost of purchasing the factory?

A) $3,000
B) $6,000
C) $15,000
D) $18,000