Suppose an Individual Can Earn 3 Percent Interest on an Annual

question 58

Multiple Choice

Suppose an individual can earn 3 percent interest on an annual term deposit.His opportunity cost of holding $100,000 in cash instead of investing in the term deposit will be:

• A)$3,300.
• B)$330.
• C)$1,000.
• D)$6,000.
• E)$3,000.

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Definitions:

American Law Institute

An independent organization in the United States that produces scholarly work to clarify, modernize, and improve the law.

Merit Pay

Links an individual’s salary or wage increase directly to measures of performance accomplishment.

High Performers

Individuals or groups known for achieving exceptional results and exceeding established standards in their field.

Low Performers

Individuals or employees who do not meet the established performance standards of an organization.