Reece has decided to start his own brewery. to purchase the necessary equipment, reece withdrew $20,000 from his savings account, which was earning 3% interest, and borrowed an additional $50,000 from the bank at an interest rate of 5%. what is reece's annual opportunity cost of the financial capital that has been invested in the business?

The opportunity cost is the income earned from her balance on savings account at the interest rate of 3% per year that Reece would received if she had not opened her owned brewery business. This opportunity cost is $600 per year.

Explanation:

Please find the below for further explanation and calculations:

The opportunity cost per one year = Income earned on saving account per one year = 20,000 x 3% = $600;

The reason why it is an opportunity cost is because as a result of opening brewery business, Reece sacrifices the income earned on this saving, instead, she contributes the saving fund to her brewery business.

answer social mobility;