Scenario 13-4
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%.
-Refer to Scenario 13-4. Abdul's annual implicit cost of capital is
A)$8,000.
B)$4,000.
C)$2,000.
D)$1,000.

Question

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The Answer of Scenario 13-4
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%.
-Refer to Scenario 13-4. Abdul's annual implicit cost of capital is
A)$8,000.
B)$4,000.
C)$2,000.
D)$1,000.

Scenario 13-4 Suppose That Abdul Opens a Coffee Shop. He Receives a Receives