This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will ... (Read 71 times)

renzo156

  • Hero Member
  • *****
  • Posts: 526
on: Apr 19, 2019

Question 1

Assume that the current interest rate is 6%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is


◦ $0, as you used your own money.
◦ $600, as that is the interest forgone by not lending the money to someone else at a 6% interest rate.
◦ $10,000, as that is the amount invested in the restaurant.
◦ $10,600, the amount invested plus the interest charge on the investment.

Question 2

You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic profit if


◦ the return on your investment is between 0 and 5%.
◦ the return on your investment is 5%.
◦ the return on your investment is greater than 5%.
◦ the return on your investment is 10% or greater.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by renzo156 on Apr 19, 2019

Anna

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


renzo156

  • Hero Member
  • *****
  • Posts: 526
Reply #2 on: Apr 19, 2019
TY


Anna

  • Sr. Member
  • ****
  • Posts: 343
Reply #3 on: Apr 19, 2019
You're welcome


« previous next »
 

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Open-top chambers, such as the one pictured above in a polar desert on Ellesmere Island, are commonl Open-top chambers, such as the one pictured above in a polar desert on Ellesmere Island, are commonl
Wetlands Store and Clean Water Wetlands Store and Clean Water
Temperature Changes on Heart Rate Temperature Changes on Heart Rate
Open pit mining creates immense holes at the surface Open pit mining creates immense holes at the surface
Gate control theory. A. open gate, B. closed gate Gate control theory. A. open gate, B. closed gate
Open and closed comedones of acne Open and closed comedones of acne
Video: Type of Transport - Active and Passive Processes

For a complete list of videos, visit our video library