Ch$.1$ Problems and Applications Q$4$

You win $$100$ in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays $5\%$ interest.

Which of the following is the opportunity cost of spending $$100$ now?

Nothing, because you won the money

The cost of entering the basketball pool

The $$105$ you would have a year from now if you put it in the bank