The Farradays hold $10,000 in their checking account for emergencies and earn 1% interest annually on the account. If they could earn 3% on a longer-term bank certificate of deposit (CD), what is the annual opportunity cost incurred by the couple?

a.) 2% APY on $10,000

b.) 1% APY on $10,000

c.) 4% APY on $10,000