Business, 07.05.2020 04:08, ninaaforever
Rob Reiner, a musician by profession, is planning to open a musical instruments store. He estimates that his monthly expenses for operating this store would include $5,000 for wages to the sales and accounts staff, electricity charges worth $1,500, rent of $5,000, and maintenance charges of $400. To start this store, Rob would have to give up his present job as a piano teacher, which pays him $2,000 per month. Additionally, he will also have to borrow $25,000 from the bank to purchase the basic furniture and instruments for the store. Based on the current lending rate, the interest payment on this loan works out to $100 every month. Rob estimates that his monthly economic profit from the sale of musical instruments worth $16,000 will be $4,000.
Which of the following can most reasonably be inferred from the information given above?
A.
The rate of interest charged on loans is 3 percent.
B.
The prices that Rob plans to charge will be higher than what his competition charges.
C.
The expected accounting cost per month is $12,500.
D.
Rob is expecting a 10 percent hike in his pay as a piano teacher.
E.
The explicit costs exceed the implicit costs of opening the store by $10,000.
Answers: 3
Business, 22.06.2019 08:20, XAINEE
Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they canβt. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above
Answers: 2
Business, 23.06.2019 08:30, wmaingrette1
Which of the following scenarios will probably cause prices to drop
Answers: 3
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