If the Cost of Going to the ATM in an Economy

Multiple Choice

If the cost of going to the ATM in an economy is $1 and the nominal interest rate is 5 percent, someone who spends $10 each day and has the total cost of holding cash = (365/T) + T, has a _____stolen.Assume that the individual visits the ATM once in every T days.

A) 5 percent
B) 10 percent
C) 15 percent
D) 20 percent