Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What is his economic profit?

Suppose Tracy will get $500 from her parents when she graduates from college two years from today. If the market interest rate is 8 percent, then what is the present value of that $500?

a. $359.12 b. $428.67 c. $462.96 d. $483.11

If the inflation rate decreased from 3.33% to 2.90% between October and November, while the nominal interest rate increased from 4.75% to 4.80%, what is the real interest rate in November?