In the summer of? 2008, at Heathrow airport in? London, Bestofthebest? (BB), a private? company, offered a lottery to win a Ferrari or 112,000 British? pounds, equivalent at the time to about $224,000. Both the Ferrari and the? money, in 100 pound? notes, were on display. If the U.K. interest rate was 6%per? year, and the dollar interest rate was 2%per year? (EARs), how much did it cost the company in dollars each month to keep the cash on? display? That? is, what was the opportunity cost of keeping it on display rather than in a bank? account? (Ignore? taxes.)
Hint: Make sure to round all intermediate calculations to at least five decimal places.