Find what was in bonds earning intrest at a rate

Reference no: EM13243583

2 former students worked in an investment bank at a salary of $60,000 each for 2 years after they graduated. together they saved $50,000. After 2 years, they decided to quit and start a business. they used the $50,000 to buy computer equipment, desks, and chairs. for the next 2 years they took in $40,000 in revenue each year, paid themselves $10,000 annually each, and rented an office for $18,00 per year. prior to the investment, their $50,000 was in bonds earning intrest at a rate of 10 percent. Are they now earning economic profits?

Reference no: EM13243583

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