All categories

3 years ago

in the example provided, which of the following was the “opportunity cost” of choosing to pay off the credit card?

Business

1 answer:

DerKrebs [107]3 years ago

6 0

It’s B. Using the money as a down payment on a house.

An opportunity cost is when you have two financial decisions and you have to choose one or the other. Whatever you don’t choose is the opportunity cost.

For example. I have 3 dollars. I can either afford a bag of chips or a bottle of coke. I choose the bag of chips. The bottle of coke is my opportunity cost.

You might be interested in

Rick deposited $3,100 into an account 13 years ago for an emergency fund. Today, that account is worth $5,280. What annual rate

trasher [3.6K]

Answer:

4.18%

Explanation:

The formula for used for this calculation is given as

Future value = Present( Initial) value (1 + r)ⁿ

Where n = number of years of the investment = 13 years

Future value (Amount of the investment after 13 years)= $5,280

Present ( Initial) value (Amount of the investment before 13 years) = $3,100

r = rate of return

The formula for r is derived as:

r = (Future value/ Present (initial) value)¹/ⁿ- 1

r = ($5,280/$3,100)¹/¹³ - 1

r = 1.0418139573 - 1

r = 0.0418139573

r is always in percentage format

r = 0.0418139573 × 100

r= 4.18139573%

Approximately, the rate of return annually for 13 years = 4.18%

8 0

3 years ago

Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how

ddd [48]

Answer:

1. $2,185

2. Percentage increase 14%. Sales decrease -22%

3. $1,805

4. -17.4%

Explanation:

1. In calculating the profit for the first week we will simply deduct the costs from the sales.

= Sales - Fixed Costs - Variable costs

= (1,800 cones * 3.5) - 2,675 - ( 1,800 cones * 0.8)

= 6,300 - 2,675 - 1,440

= $2,185

$2,185 is her profit for the first week.

2. Percentage increase in selling price will be,

= 4-3.5/3.5 * 100%

= 14%

Percentage decrease in sales

= 1,400 - 1,800 / 1,800 * 100%

= -22%

3. Using the first questions method we have,

= (1,400 * 4) - 2,675 - (1,400 * 0.8)

= 5,600 - 2,675 - 1,120

= $1,805

$1,805 is her profit for the second week.

4. Decrease in profit

= $1,805 - $2,185 / 2,185 * 100%

= -17.4%

Maria Lorenzi suffered a decrease in profit of -17.4% as a result of raising her prices by 14%.

7 0

3 years ago

Last winter, your service fraternity volunteered at an elementary school in a lower income neighborhood in your city. You notice

sesenic [268]

Answer:

A) Persistent.

C) Hard-working.

D) Creative.

Explanation:

In the given situation, it is mentioned that an individual wants to start a business that deals in hats and mittens so the needs of the children could be fulfilled. But for that, we need to find out a cofounder that should be have following traits and characteristics

a. Persistent: The person should be trying his best o achieve it rather than escape from it

b. he should be hardworking so that every child's need could be fulfillled

c. He should be creative or we can say who bring innovative ideas to the firm so that the people get attracted to the company products so that the sale of the firm could rise up

6 0

4 years ago

Which of the following could cause an appreciation of the real exchange rate in a small open economy? A decrease in the domestic

Savatey [412]

Answer: An increase in government spending

Explanation:

Currency appreciation is an increase in the worth of one currency against the value of another currency. Due to the appreciation of a currency, imports get cheaper.

In a small open economy, the appreciation of the real exchange rate can be caused by an increase in government spending as this puts pressure on domestic currency to appreciate, which leads to current account deterioration.

7 0

3 years ago

At the beginning of the current year, Snell Co. total assets were $264,000 and its total liabilities were $182,200. During the y

larisa [96]

Answer:

The company's debt ratio at the end of the current year is 66%

Explanation:

For computing the debt ratio, we need to apply the formula which is shown below:

Debt ratio = (Total liabilities) ÷ (total assets) × 100

= ($182,200 ÷ $276,000) × 100

= 66%

The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.

7 0

3 years ago