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Sarah Has a Savings Account with a $1,000 Balance That

Question 1

Multiple Choice

Sarah has a savings account with a $1,000 balance that earns an annual percentage yield of 3%.If she decides to withdraw the entire balance to buy a laptop computer,what will be her opportunity cost of buying the laptop?


A) the cost of the laptop
B) the forgone interest
C) the forgone interest and the cost of the laptop
D) the cost of the laptop minus the forgone interest

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