The local credit union pays interest of 7% on amounts above $500 in a savings account. Because Gwen does not trust banks. She chooses not to have a savings account, and instead keeps $1,000 in cash in her home safe. What is Gwen's annual opportunity cost of keeping her money at home instead of putting it in a savings account at the credit union?

Question

Quizplus · Accepted Answer

The Answer of The local credit union pays interest of 7% on amounts above $500 in a savings account. Because Gwen does not trust banks. She chooses not to have a savings account, and instead keeps $1,000 in cash in her home safe. What is Gwen's annual opportunity cost of keeping her money at home instead of putting it in a savings account at the credit union?

The Local Credit Union Pays Interest of 7% on Amounts