If the interest rate on saving is 5 percent per period, then the true opportunity cost of being paid $100 next period instead of this period is

Question

Quizplus · Accepted Answer

The true opportunity cost of being paid $100 next period instead of this period at a 5 percent interest rate is the interest that could have been earned on that $100 if it were received and saved this period, which is $5 (5% of $100).

If the Interest Rate on Saving Is 5 Percent Per