Question
Estimating the Opportunity Cost.Julia brings home $2370 per month after taxes. Julia's rent is $500 per month, her utilities are $122 per month, and her
Estimating the Opportunity Cost.Julia brings home $2370 per month after taxes. Julia's rent is $500 per month, her utilities are $122 per month, and her car payment is $363 per month. Julia is currently paying $291 per month to her orthodontist for her braces. Julia's groceries cost $78 per week and she estimates her other expenses to be $244 per month. As a result, she has $538 left each month to put toward savings to reach her financial goals. Julia is considering trading in her car for a new one. Her new car payment will be $480 per month, and her insurance cost will increase by $97 per month. Julia determines that her other car-related expenses (gas, oil) will stay about the same. What is the opportunity cost if Julia purchases the new car? The opportunity cost if Julia purchases the new car is $ nothing. (Round to the nearest dollar.)
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