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velikii [3]
3 years ago
7

John has decided to start his own lawn-mowing business. To purchase the mowers and the trailer to transport the mowers, John wit

hdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is John's annual opportunity cost of the financial capital that has been invested in the business?
a. $30b. $140c. $170d. $300
Business
1 answer:
katovenus [111]3 years ago
4 0

Answer:

$ 170

Explanation:

Opportunity cost in the value of the missed alternative. It is the foregone benefit as a result of choosing one item over another. In the case of John, the opportunity cost is the interest receivable forfeited as a result of engaging in the lawn moving business.

The interest missed include :

     1. 3 percent  interest on $ 1000 savings

= 3/100 x 1000= $ 30

7 percent interest on $ 2000 on loan

= 7/100 x 2000=  $ 140

Total opportunity cost = $30 + $ 140

    = $ 170

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kozerog [31]

Answer:

Increase.

Explanation:

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Many people do not know, however, under contracts with car insurers, smaller deductibles cause the premium to increase, making the individual responsible for insurance need to pay a higher monthly amount. A higher deductible, on the other hand, would reduce the value of the premium. In this case, we can say that if Deon chooses a lower deductible, he will have the high premium.

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3 years ago
McHenry, a New York resident, files a suit in a New York state court against OneWorld Inc., a company based in California. OneWo
anygoal [31]

Answer:

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3 0
3 years ago
When a bank account pays compound interest, it pays interest not only on the principal amount that was deposited into the accoun
Ann [662]

Answer:

A = P (1 + r / m)^n m

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7 0
4 years ago
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The teaching and training careers and the professional support careers can be compared because option  A) Both careers try to support student success; however, teaching and training careers involve direct instruction of students.

<h3>What are teaching and training careers and the professional support careers ?</h3>

They are both careers that is needed for the students so they can come out with flying colors.

For instance, teaching involves passing across knowledge to students, and the teacher is expected to use different techniques so that the students can cope and be successful academically.

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4 0
4 years ago
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