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Kyohei wants to buy a new guitar that costs $500. He has the money available...

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Accounting

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Kyohei wants to buy a new guitar that costs $500. He has the money available in his savings account, but he is considering charging the purchase to a credit card with an annual interest rate of 10 percent. If he charges the $600 to his credit card, he would pay off the balance in full in one year. The annual interest rate in his savings account is 3 percent. What is Kyohei's opportunity cost of purchasing the guitar using his credit card? Multiple Choice $35 $50 $550 $535

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