Paul's mom, Gina, owns her home outright, without a mortgage. It is currently worth 100,000 If she could get four percent interest by investing her money in a secure government bond, what is the implicit annual interest cost of her home? A. 4,000 B. 6,000 C. 5,000 D. 3,000

To calculate the implicit annual interest cost of Gina's home, we need to consider what she could earn if she invested the current value of her home in a secure government bond that yields a four percent annual interest rate. The implicit cost represents the opportunity cost of not investing that money. The formula to calculate this is:Implicit cost = Asset Value * Annual Interest RateIn this case, the Asset Value is the current worth of Gina's home, which is Implicit cost =