Reading 5: The Time Value of Money LOS a: Interpret interest rates as required rate of return, discount rate, or opportunity cost. 1、Wei Zhang has funds on deposit with Iron Range bank. The funds are currently earning 6% interest. If he withdraws $15,000 to purchase an automobile, the 6% interest rate can be best thought of as a(n): A) discount rate. B) required rate of return. C) financing cost. D) opportunity cost. The correct answer was D) Since Wei will be foregoing interest on the withdrawn funds, the 6% interest can be best characterized as an opportunity cost — the return he foregoes by postponing his auto purchase until the future.
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[此贴子已经被作者于2008-1-17 16:57:19编辑过] | 
发表于 2008-1-17 16:57
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