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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: