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You Decide to Lend $100 to a Friend Interest Free

question 21

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You decide to lend $100 to a friend interest free for one year. You calculate that you could have earned 10% interest. What is the opportunity cost of the loan if it is paid on time?


Definitions:

Economy

A system of production, distribution, and consumption of goods and services within a society.

Contingent Work

Employment arrangements that are temporary or flexible and do not have long-term contracts, including freelance, part-time, and temporary jobs.

Third Sector

The segment of an economy or society that is composed of non-governmental organizations and other non-profit groups that provide public services and goods.

Globalization

The process of interaction and integration among people, companies, and governments worldwide.

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