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jarptica [38.1K]
3 years ago
7

Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year,

Scott sold the business for $4,100,000. His accounting profits is:
Business
1 answer:
Veseljchak [2.6K]3 years ago
7 0

Answer:

$100,000

Explanation:

Accounting profit = Revenue - Explicit Cost

$4,100,000 - $4,000,000 = $100,000

Accounting profit does not taken into account opportunity cost or implicit cost. The implicit cost here is the amount of interest forgone by starting the store

This interest rate would have been earned if he left the money in his account

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BARSIC [14]

Copyright law contains an exception known as fair use which provides for a limited set of circumstances where others can use portions of copyrighted material without first obtaining permission.

<h3>What is copyright law?</h3>

It should be noted that copyright law simply means a law that grants the holder the control over the production and distribution of a material.

In this case, copyright law contains an exception known as fair use which provides for a limited set of circumstances where others can use portions of copyrighted material without first obtaining permission.

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3 0
2 years ago
What is the percentage change in the PV of $100 due in 1 year when the interest rate changes from 5% to 10%?
son4ous [18]

Answer:

c. Decreases by 4.5%

Explanation:

Calculation for What is the percentage change in the PV

First step is to calculate the present value when r is 5%

PV = 100 / (1 + 5%)^1

PV = $95.24

Second step is to calculate present value when r is 10%

PV = 100 / (1 + 10%)^1

PV = $ 90.91

Last step is to calculate the percentage change in the PV

Percentage change in the PV = (90.91 - 95.24) * 100 / 95.24

Percentage change in the PV = - 4.55% (Decrease)

Therefore the Percentage change in the PV Decreases by 4.5%

3 0
3 years ago
Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat
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The increase in US interest rates relative to the British interest rate would cause the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

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When there is an increase in the demand for the US dollars relative to the Swiss franc, the US dollars would appreciate.

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8 0
2 years ago
On November 1, 2021, New Morning Bakery signed a $191,000, 6%, six-month note payable with the amount borrowed plus accrued inte
rosijanka [135]

Answer:

$196,730

Explanation:

The note payable signed has an interest rate of 6% per year. Since the amount is paid back in 6-months, only half a period should be considered when calculating interests due. The total amount that New Morning Bakery should pay back on May 1, 2022 is given by:

A =\$191,000*(1+(0.06*0.5))\\A=\$196,730

The company will need to pay $196,730.

8 0
3 years ago
According to the most recent data available, there are approximately ____ noncustodial mothers in the united states.
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<span>According to the most recent data available, there are approximately two million noncustodial mothers in the united states.
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