Scenario 13-5 Suppose That Emily Opens a Restaurant. She Receives a Loan

question 232

Multiple Choice

Scenario 13-5
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000. She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%.
-Refer to Scenario 13-5. Emily's implicit cost of capital is

• A) $2,000.
• B) $4,000.
• C) $12,000.
• D) $14,000.

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Definitions:

Spider

A spider is an arachnid that is characterized by having eight legs, a body divided into two parts, and the ability to spin webs for catching prey.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Irrational Fear

An intense and persistent fear of specific situations, objects, activities, or persons that is excessive and unreasonable, given the reality of the threat.

Phobia

An extreme or irrational fear or aversion to something, often leading to avoidance behaviors.