Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savings account, which was earning 3% interest, and borrowed an additional $4,000 from the bank at an interest rate of 7%. What is Gwen's annual opportunity cost of the financial capital that has been invested in the business?
a. $60
b. $280
c. $340
d. $660
c
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In perfect competition, each additional unit of output that a firm sells will yield a marginal revenue that is
A. less than price. B. equal to price. C. equal to average total cost. D. greater than price.
Which of the following rises during a recession?
A) Gross Domestic Product B) Investment C) Unemployment D) Consumption
When tax rates fall, people tend to: When tax rates fall, people tend to: When tax rates fall, people tend to: When tax rates fall, people tend to:
A. increase the amount they work a great deal. B. hardly increase the amount they work. C. hardly decrease the amount they work. D. decrease the amount they work, although to what degree is still being researched.
banks make additional loans when required
What will be an ideal response?