Lucky Louie Is Considering a NOW Account That Requires a $1500

question 92

Multiple Choice

Lucky Louie is considering a NOW account that requires a $1500 minimum balance and pays .5% interest. What would be the opportunity cost if Louie needs to withdraw the required minimum balance from a savings account paying 2% interest? Compute the opportunity cost for one year.

• A) $10
• B) $22.50
• C) $25
• D) $35

---

Definitions:

Venous Blood

Blood that is returning to the heart through veins after having circulated through the body, characterized by its dark red color due to lower oxygen content.

Sympathetic Stimulation

Activation of the sympathetic nervous system, resulting in physiological responses such as increased heart rate and blood flow to muscles.

Metabolic Rate

The rate at which the body uses energy to maintain basic vital functions such as breathing, circulation, and cell production.

Precapillary Sphincters

Ring-like muscles located at the entrance of capillaries, controlling blood flow into the capillaries by contraction and relaxation.