Andy has $318,000 in savings and the interest rate is 3.8%. He is considering quitting his job, moving to Hawaii, and bu

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Andy Has 318 000 In Savings And The Interest Rate Is 3 8 He Is Considering Quitting His Job Moving To Hawaii And Bu 1 (35.48 KiB) Viewed 22 times

Andy has $318,000 in savings and the interest rate is 3.8%. He is considering quitting his job, moving to Hawaii, and buying a vacation property where he would live and rent accommodations to tourists. His job pays him $72,000 per year. He estimates that, in Hawaii, his annual revenue would be $168,000; and costs of utilities, wages, insurance, and maintenance of the property would be $18,400 per year. He would have to use $283,000 of his savings to purchase the property. What would be Andy's economic profit for the business in Hawaii? Answer: