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 62 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?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Effects of growth rate on development. Effects of growth rate on development.
Cheetah at the Werribee Open Range Zoo Cheetah at the Werribee Open Range Zoo
C, A nurse can also administer the medication by setting the dose and rate with an electronic infusi C, A nurse can also administer the medication by setting the dose and rate with an electronic infusi
Temperature Changes on Heart Rate Temperature Changes on Heart Rate
Open-ocean systems vary in their biological diversity Open-ocean systems vary in their biological diversity
You deposit $2000 each year into an account earning 4% interest compounded annually. How much ... You deposit $2000 each year into an account earning 4% interest compounded annually. How much ...
Video: Oogenesis Animation

For a complete list of videos, visit our video library