Do the opportunity costs of borrowing differ

Reference no: EM13191380

Lenders perceive that you are risky, so you must pay 12 percent annual interest to borrow from one of them. You only receive 6 percent on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ in this example? Explain why or why not.

Reference no: EM13191380

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