If the annual market interest rate is 20 percent, the annual opportunity cost of having $50 cash in your pocket is

Name: If the annual market interest rate is 20 percent, the annual opportunity cost of having $50 cash in your pocket is
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Quizplus · Accepted Answer

The annual opportunity cost can be calculated by multiplying the market interest rate (20%) with the amount of cash in your pocket ($50). Hence, the annual opportunity cost of having $50 cash in your pocket is $10 (20% x $50).

If the Annual Market Interest Rate Is 20 Percent, the Annual