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Rom4ik [11]
3 years ago
6

Habib withdrew $100,000 from his bank account paying 5% interest to purchase equipment for his construction company. If Habib ea

rns an accounting profit of $10,000 and he has no other opportunity costs, his economic profit will be equal to
Business
1 answer:
daser333 [38]3 years ago
6 0

Answer:

$5,000

Explanation:

Given that,

Accounting profit = $10,000

Interest rate = 5%

Amount withdraw = $100,000

The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.

Accounting profit is determined by subtracting explicit costs from the total revenue.

Accounting profit = Total revenue - Explicit costs

Economic profit:

= (Total revenue - Explicit costs) - Implicit costs

= $10,000 - (Interest income)

= $10,000 - (5% × $100,000)

= $10,000 - $5,000

= $5,000

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3 years ago
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level
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Answer:

$1,667.67

Explanation:

Given:

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3 years ago
Suppose you have $850 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. Ho
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Answer:

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If you've been a victim of identity theft, what should you do after contacting the company that reported the suspicious charge a
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Murrr4er [49]

Answer:

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