You Borrow $10,000 at an Interest Rate of 5% to Open

Multiple Choice

You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic loss if

A) the return on your investment is less than 5%.
B) the return on your investment is exactly 5%.
C) the return on your investment is greater than 5%.
D) indeterminate from given information.