You Use $45,000 of Your Own Money to Start an Espresso

question 179

Multiple Choice

You use $45,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate is 8%, you earn an economic profit of

• A) -$900.
• B) $100.
• C) $500.
• D) $900.