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Whitepunk [10]
3 years ago
13

A truck rental company rents a moving truck for one day by charging $ 34 plus $ 0.05 per mile. Write a linear equation that rela

tes the cost​ C, in​ dollars, of renting the truck to the number x of miles driven.
Business
1 answer:
lara [203]3 years ago
6 0

Answer:

C = 0.05*x + 34

Explanation:

There are several ways to approach this problem. However, we will follow a logical and simple procedure.

It is always possible to write any linear equation as:

y = mx + b, where:

m = slope

b = y-intercept (value when x = 0)

The problem statement guarantees us that b=34, because if we do not drive any mile (x=0), then the cost should be equal to $ 34. Also, we know that m=0.05, because every driven mile (increase in x by 1) the cost should increase by $5. Therefore, we can write the linear equation as:

y = 0.05x + 34

Changing the dependent variable y for C (to relate it with the cost) we have that:

C = 0.05x + 34

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3 years ago
An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What
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It will take 1 year and 307 days to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $6,900

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Cf3= $6,300

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<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>

<u></u>

Year 1= 4,200/1.15 - 6,900= -3,247.83

Year 2= 5,100/1.15^2 - 3,247.83= 608.50

<u>To be more accurate:</u>

(3,247.83 / 3,856.33)*365= 307 days

It will take 1 year and 307 days to cover the initial investment.

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