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 70 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?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Hang the canister from the vehicle’s hood and adjust the air pressure regulator to full OPEN ... Hang the canister from the vehicle’s hood and adjust the air pressure regulator to full OPEN ...
Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011 Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011
Population growth and growth rate, 1950 - 2100 Population growth and growth rate, 1950 - 2100
Factors That Affect Your Basal Metabolic Rate Factors That Affect Your Basal Metabolic Rate
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
What rate, compounded once every 3 years, is equivalent to 9% effective rate? What rate, compounded once every 3 years, is equivalent to 9% effective rate?
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library