Samantha has been working for a law firm and earning an annual salary of $90,000. She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and $35,000 salary for a secretary. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of 3%. Assuming that there are no additional expenses, Samantha’s annual implicit costs will equal __________ dollars.

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A: The purchase cost of a home is $2100000The down payment is 16% of the purchase costNumber of payment…

Q: Pigou buys a house for $500,000, rents it for $2,000 per month for four years, and then sells it for…

A: If rent is $2,000 per month, then the rent for four years can be calculated as follows:

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A:

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A: John's salary as a teacher= $54000 Monet he borrowed from bank at 5% interest= $40000 Interest paid…

Q: Which of the following statements is true over the term of a fixed rate mortgage? Although monthly…

A: A mortgage is a formal arrangement wherein a bank, building society, or other lending institution…

Q: The Fly-by-Night finance company advertises a "bargain 6% plan" for financing the purchase of…

A: Loan amount = $7500 Loan term = 24 months = 2 years  Monthly payment = (7500 + 0.06*2*7500) / 24 =…

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A: Paying interest on the loan is an Explicit cost Interest on Loan amount 40,000 x 5%…

Q: After graduation, you face a choice. One option is to work for a multinational consulting firm and…

A: Accounting profit is the difference between total revenue and total explicit costs,   Economic…

Q: A firm has $75,000 of cost of goods sold and $5,000 of accounts payable. Assume there are 365 days a…

A: To represent the company's short-term debt to its creditors or suppliers, "Accounts payable" (AP) is…

Q: Monique borrowed $1,118 for 12 weeks at a simple interest rate of 834%. How much money does she need…

A: It is given that Monique borrowed - $1,118; the simple interest rate is 8 3/4% or 8.75%. Also, it is…

Q: A discount interest loan is a loan arrangement where the interest and any other related charges are…

A: The given information: Loan for 1 year is 10,000 The monthly payment is 1,400 Net fund the lender…

Q: Jessica has been working for a law firm and earning an annual salary of $90,000. She decides to open…

A: Given; Her annual salary= $90000 Annual expenses:- Office rent= $15000 Supplies= $1700 Utilities=…

Q: Katie quit her job which paid her $30,000 a year in order to start a pizza restaurant. In her first…

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Q: Emily recently graduated with a B. About the same time, Emily inherit rather than put the money into…

A: Explicit costs are actually incurred and payable during the course of running a business. For…

Q: A new home that costs $490,000 has presented itself. You want to make a 20% down payment and finance…

A: In the mention question, we are expecting an interest rate which is 4.375% but we are given quoted…

Q: Handout 1 Real-Life Balance Sheets - - John John is a 28-year-old father of two. He lives in a house…

A: Assets are the items you own that can provide future economic benefit. Liabilities are what you owe…

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A: The given statement “the higher the MARR (minimum required rate of return), the higher the price…

Q: Frank is an engineer who had decided to leave his job making $150,000 per year to brew and sell…

A: Economics is the branch of knowledge in which we study scarce resources and unlimited wants. The…

Q: I want to be earning an annual salary of $100,000 when I retire in 14 years. I have been offered a…

A: Present value of an Investment :  PV = FV1+ rt PV is the amount/ salary you should request, FV…

Q: Traffic at a certain intersection is 2076 cars per day. A consultant has told the city that traffic…

A: Traffic at a certain intersection is 2076 cars per day. A consultant has told the city that traffic…

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A: An investment is a possession or thing bought with the intention of making money or appreciating in…

Q: An engineer invests $5,800 at the end of every year for a 35-year career. If the engineer want $1…

A: Rate of return is a financial measure used to evaluate the profitability or performance of an…

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A: The amount of money that is set aside each month from the income is referred to as your monthly…

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A: There are two types of cost of doing a business. One is explicit cost and other is implicit…

Q: Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon,…

A: Given: Golda gave up a salary = $40,000 per year Invested her savings = $30,000 The savings were…

Q: Circular Flow Chart Quiz Fill in the 6 BLANK spots using the following 5 options: Product Markets…

A: The circular flow model demonstrates how money moves through an economy. It shows the basic economic…

Q: Many retirement funds charge an administrative fee equal to 0.25% on managed assets.  Suppose that…

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