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Burka [1]
3 years ago
7

You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. I

f the current interest rate is 8%, you earn an economic profit of _____.
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
6 0

Answer:

-$1,500

Explanation:

If the current interest rate is 8%, you earn an economic profit of:

Economic profit = Profit - Opportunity cost

Economic profit = (0.05 * $50000) - (0.08 * $50000)

Economic profit = $2,500 - $4,000

Economic profit = -$1,500

So, i will earn an economic loss of $1,500

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What is the opportunity cost of an investment?
Sveta_85 [38]

Answer:

B.  The value of the next most valuable opportunity

Explanation:

When it comes to choosing among investments, you always have to let go of other choices when you've decided to choose one already. Every option has its own benefits. However, there is an option which is always considered to have the next most valuable opportunity. This one is what you call your opportunity cost. This means, <em>you have foregone the benefits of this option</em> by choosing your current option.

<em>The benefits that you could have enjoyed in choosing this option was sacrificed</em> <u>because you have chosen the current one.</u>

3 0
3 years ago
Read 2 more answers
At a local supermarket, linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. given this i
myrzilka [38]
<span>$20.99 is the price of the box of plant fertilizer. Additionally, $20.99 ends up being 16% off the original price since $25 - $20.99 is $4.01, if you then divide $4.01 by $25 you get 0.16, which is 16% when you multiple by 100.</span>
4 0
3 years ago
A random sample of 84 shoppers were interviewed and 51 said they prefer to shop alone rather than with someone else. let p repre
Dmitry [639]
The point estimate or p hat is a single value that shows the best estimation of a certain parameter among a population.

To calculate point estimate, we divide the parameter by the whole population.

In case of this problem:
p hat = 51/84 = 0.607

To get the percent, we multiply the output by 100:
% of point estimate = 0.607 x 100 = 60.7%
7 0
3 years ago
Frasquita acquired equipment from the manufacturer on 6/30/2018 and gave a noninterest-bearing note in exchange. frasquita is ob
Alinara [238K]
Since this is a noninterest-bearing note, or a zero-interest-bearing note payable, what's entered into the 6/30/2018 balance sheet is the Future Value of the equipment. The future value, or the face value, is the amount that Frasquita is obligated to pay on 4/30/2019. 

This means that $550000 is the amount recorded as a Notes Payable in the 6/30/2018 balance sheet.
5 0
4 years ago
Linda Perkins (64) shared a home all year with her son, Dennis (41), and Dennis’s son, Chase (20). Linda and Dennis worked full
Marat540 [252]

Answer: D. Either Linda or Dennis, but not both.

Explanation: AGI stands for adjusted gross income. This is basically your gross income which is adjusted after tax deduction.

In this case, because the house is shared between Linda and Dennis and also since they are the ones who earn only. Therefore, either one of them would be eligible for earned income tax credit.

If they had been living in separated houses, both of them would have received the earned income Tax Credit.

7 0
3 years ago
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