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maxonik [38]
3 years ago
11

Suppose Joe purchases the factory using $200,000 of his own money and $200,000 borrowed from a bank at an interest rate of 6 per

cent. What is Joe’s annual opportunity cost of purchasing the factory?
Business
1 answer:
ratelena [41]3 years ago
5 0

Answer:

$18,000

Explanation:

The opportunity cost refers to the extra costs or benefits lost from choosing one activity or investment over another.

In this case, Joe's opportunity cost = interest earned by his savings account + interest paid to the bank = ($200,000 x 3%) + ($200,000 x 6%) = $6,000 + $12,000 = $18,000

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A house sold for $39,379. The buyer paid 20% down. Monthly interest on the loan was $229.69. What was the annual interest rate o
djverab [1.8K]

Answer:

8.75%

Explanation:

The annual interest rate will be computed as follows:

Loan amount = Proportion of loan X Price of house

Loan amount = 80% X $39,379 = $31,503.2

Annual interest = $229.69 X 12 = $2,756.28

Annual interest rate                     = ($2,756.28/ $31,503.2) X 100%

                                                      = 8.75%

4 0
3 years ago
The tennis club where you play tennis charges $50.00 per month and $10.00 per hour of court time. If your current month's bill i
leonid [27]

Answer:

5 hours

Explanation:

Data provided in the question

Per month tennis charges = $50

Court time per hour = $10

Current month bill = $100

By considering the above information we can find out the variable expense that is shown below:

= Current month bill - per month tennis charges

= $100 - $50

= $50

So, the number of court time hours usage is

= $50 ÷ $10

= 5 hours

7 0
3 years ago
g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale
Tresset [83]

Answer and Explanation:

The impact on the sale and the payoff the loan in an accounting equation is as follows:

But before that

The following journal entries should be recorded

Cash $60,000    

        To Land $40,000

        To Profit on sale of land $20,000

(Being the sale of the land is recorded)

Loan Dr $15,000

       To Cash $15,000

(Being the loan is paid)

Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000

8 0
2 years ago
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Artemon [7]

Answer:

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Explanation:

3 0
2 years ago
Which two forms of financial aid require the student to bear the costs of college education?
Flauer [41]
The answer is A. direct loans, and C. work-study programs.
3 0
3 years ago
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