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

Author Question: You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will ... (Read 36 times)

D2AR0N

  • Hero Member
  • *****
  • Posts: 561
on: Apr 19, 2019

Question 1

Assume that the current interest rate is 7%. 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.
◦ $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
◦ $10,000, as that is the amount invested in the restaurant.
◦ $10,700, the amount invested plus the interest charge on the investment.

Question 2

You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will earn an economic profit if the return on your investment is


◦ between 0 and 6%.
◦ 6%.
◦ greater than 6%.
◦ 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 D2AR0N on Apr 19, 2019

choc0chan

  • Sr. Member
  • ****
  • Posts: 362
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


D2AR0N

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Apr 19, 2019
TY


choc0chan

  • Sr. Member
  • ****
  • Posts: 362
Reply #3 on: Apr 19, 2019
You're welcome


« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Thyroid conditions may make getting pregnant impossible.

(A) Closed (or simple) fracture and (B) open (or compound) fracture. (A) Closed (or simple) fracture and (B) open (or compound) fracture.
Sweet Cicely Sweet Cicely
A first aid box should be centrally located in the shop and kept stocked with the recommended ... A first aid box should be centrally located in the shop and kept stocked with the recommended ...
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
Video: T cell receptors

For a complete list of videos, visit our video library