The opportunity cost of a $100 loan refers to what you could have done with that $100 if you hadn't borrowed it. Essentially, it's the value of the next best alternative that you forego by choosing to borrow the money.
For example, if you borrowed $100 to purchase a new gadget, the opportunity cost could be the interest you'll pay on the loan plus any fees. Additionally, you're giving up the opportunity to use that $100 for something else, such as investing it in the stock market, saving it for emergencies, or spending it on other goods or services.
In a broader sense, the opportunity cost of borrowing $100 could be measured in terms of the potential returns or benefits you could have gained if you had used that money differently. For instance, if you had invested the $100 in a stock that later appreciated in value, the opportunity cost would be the foregone investment return.
In summary, the opportunity cost of a $100 loan is what you give up in terms of alternative uses of that money, whether it's potential returns on investments, other purchases, or simply the interest and fees associated with borrowing.
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