Emily Is Considering Two Mutually Exclusive Financial Options: (I)to Deposit

question 43

Multiple Choice

Emily is considering two mutually exclusive financial options: (i) to deposit $4 000 in her bank's savings account that pays 4.6% annual interest, or (ii) to purchase a $4 000 one-year guaranteed investment certificate with a monthly interest rate of 0.3%. From an opportunity cost standpoint, by making the decision to deposit $4 000 in the bank account, Emily will

• A)gain $37.6 by the end of the year.
• B)lose $37.6 by the end of the year.
• C)gain $57.6 by the end of the year.
• D)lose $57.6 by the end of the year.
• E)make zero economic profit.

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Definitions:

Acromegaly

A hormonal disorder that results from too much growth hormone in the body, leading to enlarged bones in hands, feet, and face.

Growth Hormone

A hormone produced by the pituitary gland that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Hyperthyroidism

A condition where the thyroid gland produces too much thyroid hormone, leading to accelerated metabolism and various systemic symptoms.

Thyroid Storm

A life-threatening health condition involving an extreme overproduction of thyroid hormones, leading to a rapid heartbeat and high fever.