A hotel owner borrows $10,000 at 8% interest for one year. The owner re-invests the money and
Question:
A hotel owner borrows $10,000 at 8% interest for one year. The owner re-invests the money and achieves a 25% gain in that year. What was the dollar amount of the surplus gain achieved by this hotel owner’s leveraging activity?
a. $1,700
b. $800
c. $2,500
d. $3,300
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Related Book For
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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