Opportunity cost is the missed gain from not choosing a better option. Calculating future investment opportunity costs is complex and not always precise. Consider opportunity costs to optimize ...

A choice between two or more alternatives results in an opportunity cost. Life in general and investing both rely on this concept. You can define opportunity cost as the amount of money you would lose ...

With that choice, the opportunity cost is 4%, meaning you would forgo the opportunity to earn an additional 4% per year on your funds. Here are some more examples: A business owner wants to add a ...