Assume That the Current Interest Rate Is 7

Multiple Choice

Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is

A) $0, as you used your own money.
B) $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
C) $10,000, as that is the amount invested in the restaurant.
D) $10,700, the amount invested plus the interest charge on the investment.