Martha estimates that the fixed costs associated with opening her new hair salon are $100,000. she expects the salon to attract 500 new customers in the first year, each of which will cost $25 to service. martha expects to generate $50,000 per year in revenue. for martha, the total cost of opening her hair salon and staying in business for one year will be
a) 50,000
b) 87,500
c) 100,000
d) 112,500
e) 150,000

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years