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 85 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?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

THE RATE OF PHOTOSYNTHESIS THE RATE OF PHOTOSYNTHESIS
OPEN GLOVING 4 OPEN GLOVING 4
Capuchins use stones to crack open palm nuts in much the same way that chimpanzees in some populatio Capuchins use stones to crack open palm nuts in much the same way that chimpanzees in some populatio
Temperature Changes on Heart Rate Temperature Changes on Heart Rate
Free Energy Rules: The Second Law in Open Systems Free Energy Rules: The Second Law in Open Systems
A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ... A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ...
Video: Introduction to Eating Disorders

For a complete list of videos, visit our video library