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Quinn has decided to start her own photography studio to purchase the necessary equipment Quinn withdrew $2000 from her savings account which was earning 3% interest and borrowed an additional $4000 from the bank at an interest rate of 7% what is Quinn's annual opportunity cost of the financial capital that has been invested in the business
Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savi
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Answer #1

Option A. $60

Explanation: Opportunity cost is the value forgone in order to select another alternative. Here, the value forgone is the interest forgone on the savings = 3% of $2,000 = 3/100 * $2,000 = 3 * $20 = $60.

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