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Entity X has $60,000 in the bank. With this money, they bought 1 gram of gold for 150 dollars and rented a safe in Z

Entity X has $60,000 in the bank. With this money, they bought 1 gram of gold for 150 dollars and rented a safe in Z Bank for 6 months to keep these gold in his safe.

They paid $1,000 for the safes rent. After six months. The entity, sold all of these golds for 190 dollars per 1 gram.

On the other hand, Z Bank, pays interest on 6-month deposits. The annual interest rate is 20%.

Please calculate the

  • accounting cost
  • opportunity cost
  • expected profit
  • Net economic gain or loss

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