1.4) You use RM40,000 of your own money to start a cateringbusiness. During the first year you earn a 5% return on thatinvestment. If the current interest rate on savings is 8%, you earnan economic profit ofWorking Calculation:

Money available for investment= RM 40,000Return on investment=5%Current interest rate on savings=8%

Answered: 1.4) You use RM40,000 of your own money…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 4SCQ: Which has a higher average return over time: stocks, bands, or a savings account? Explain your...

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1.4) You use RM40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of Working Calculation: