Ask Question
20 February, 13:47

A grocery store manager has $600 in cash with which to buy a rug cleaner. Rental income from the cleaner would be about $75 per year. The interest rate is 11 percent. Should the manager buy the machine?

+1
Answers (1)
  1. 20 February, 14:06
    0
    Yes, the manager should buy the machine

    Explanation:

    If we find the interest of the 600 results in: Interest = $ 600 * 0.11 = $ 66

    So, if it is convenient to buy the machine since the rate of return is higher than the interest rate.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A grocery store manager has $600 in cash with which to buy a rug cleaner. Rental income from the cleaner would be about $75 per year. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers