How Much Money Would Have to Be Invested from June

question 227

Multiple Choice

How much money would have to be invested from June 4 until December 22 at 13%, in order to earn $750 in interest?

• A) $12,840
• B) $5,769
• C) $2,186
• D) $10,477
• E) $5,151

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Definitions:

Economic Profit

Revenue minus the opportunity cost of resources used; usually less than the accounting profit.

Accounting Profit

Revenue minus explicit cost.

Factors of Production

The resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.

Opportunity Cost

The real cost of an item: what you must give up in order to get it.