Scott used 4,000,000 from his savings account that paid an annual ...

[Mr3Hunna]

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

[31809pancho]

Answer to Question 1

c

Answer to Question 2

d

[Mr3Hunna]

YES! Correct, THANKS for helping me on my review

[aliotak]

Thanks for the timely response, appreciate it