John has decided to start his own lawn-mowing business. To purchase the mowers and the trailer to transport the mowers, John withdrew $1,000 from his
savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is John's annual opportunity
cost of the financial capital that has been invested in the business?
(hint: opportunity costs includes both implicit and explicit costs)
$30
$140
O $170
$300