Recover his opportunity cost of making the loan

Assignment Help Business Economics

Reference no: EM131196980

Tom is a mushroom farmer. He invests all his spare cash in additional mushrooms, which grow on otherwise useless land behind his barn. The mushrooms triple in weight during their first year, after which time they are harvested and sold at a constant price per pound. Tom’s friend Dick asks Tom for a loan of $300, which he promises to repay after 1 year. How much interest will Dick have to pay Tom in order for Tom to recover his opportunity cost of making the loan?

Reference no: EM131196980

Questions Cloud

Financial topic rather than an economics topic : Your instructor will select several of the best analyses for presentation to the class. If the selected article is not relevant (e. g., financial topic rather than an economics topic) or if your analysis is unprofessional in format, tone, or grammar,..

Calculate the march 2008 price and efficiency variances : Calculate the March 2008 price and efficiency variances of direct materials and direct manufacturing labour. Comment on these variances.

Find the probability distribution for y : Find the probability distribution for Y, the number of closed paths from a to b, when all three switches are turned on.

In what decades did labor unions gain the most members : In what decades did labor unions gain the most members? Which of the following is not true about the theory of the dual labor market? Real wages have fallen since 1973 for all the following reasons except.

Recover his opportunity cost of making the loan : Tom is a mushroom farmer. He invests all his spare cash in additional mushrooms, which grow on otherwise useless land behind his barn. The mushrooms triple in weight during their first year, after which time they are harvested and sold at a constant ..

Calculate investment in operating capital : You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 30 percent, and its depreci..

Point charge to have magnitude : A) What must the value of q3 be for the net force on this point charge to have magnitude 3.90 μN? B) What is the direction of the net force on q3? C)Where along the x axis can q3 be placed and the net force on it be zero, other than the trivial ans..

Journalize the entries to record the fore going transactions : Journalize the entries to record the foregoing transactions.- Indicate the amount of the interest expense in (a) 2014 and (b) 2015.

How does money of stable value influence the volume of trade : Use the economic way of thinking to answer three of the following four questions. Be sure to answer each in at least two complete sentences. Provide page references to CSE and other learning materials when appropriate. What impact will a higher minim..

User Account

All Pages