Author Question: Scott used 4,000,000 from his savings account that paid an annual interest of 5 to purchase a ... (Read 62 times)

Mr3Hunna · **on:** Jul 1, 2018

Scott used 4,000,000 from his savings account that paid an annual interest of 5 to purchase a hardware store. After one year, Scott sold the business for 4,100,000 . His economic profits is:
a. 300,000
b. 100,000
c. -100,000
d. -200,000

Question 2

Scott used 4,000,000 from his savings account that paid an annual interest of 5 and a 60,000 loan at an annual interest rate of 5 to purchase a hardware store. After one year, Scott sold the business for 4,100,000 . His economic profits is:
a. 300,000
b. 100,000
c. 97000
d. None. He runs an economic loss of 103,000