Scenario 13-1 korie wants to start her own business making custom furniture. she can purchase a factory that costs $400,000. korie currently has $500,000 in the bank earning 3 percent interest per year. refer to scenario 13-1. suppose korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. what is korie's annual opportunity cost of purchasing the factory?
a. $18,000
b. $6,000
c. $3,000

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Explain the relationship between consumers and producers in economic growth and activity

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.