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Mar 10, 2019 at 21:12 comment added Ben Voigt After calculating both and comparing to the available answers, it seems the quiz was looking for future value of the loss ($1265.62). Your result agrees with my result for present value of the loss.
Mar 10, 2019 at 21:11 comment added Karthick S Yes. The answer comes to $ 1204.64. It isn't one of the provided options. :(
Mar 10, 2019 at 21:08 comment added Ben Voigt Did you try with the correction I gave you?
Mar 10, 2019 at 21:08 comment added Karthick S Thanks Ben. I am trying to find that opportunity cost. But the formula does not seem to work. Please guide me with the correct formula.
Mar 10, 2019 at 21:06 comment added Ben Voigt @KarthickS: If you fail to invest it, you will be left with (a smaller real amount) which has an FV of $25000. You need to find the difference between these two real amounts (the opportunity cost). That loss can be expressed in either PV or FV.
Mar 10, 2019 at 21:02 comment added Karthick S To clarify, $25000 is the PV. We need to find the PV - FV.
Mar 10, 2019 at 20:52 history answered Ben Voigt CC BY-SA 4.0