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If You Are Considering a NOW Account That Requires a $500

question 42

Essay

If you are considering a NOW account that requires a $500 minimum balance and pays 2 percent interest,what would be the opportunity cost if you would need to withdraw the required minimum balance from a savings account paying 5 percent interest? Compute the opportunity cost for one year.
(a)$10
(b)$15
(c)$25
(d)$35


Definitions:

Compulsive Behavior

Repetitive, often ritualistic actions that an individual feels driven to perform, usually as a response to obsessive thoughts or to reduce anxiety.

OCD-Related Disorders

A category of mental health disorders characterized by obsessions (unwanted, persistent thoughts) and compulsions (repetitive behaviors or mental acts) that significantly interfere with daily living.

Social Phobia

Social phobia is an anxiety disorder characterized by an intense fear of social situations and being judged or negatively evaluated by others.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

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