Brandon is deciding between two truck rental companies. Company A charges an initial fee of $75 for the rental plus $2 per mile driven. Company B charges an initial fee of $35 for the rental plus $3 per mile driven. Let AA represent the amount Company A would charge if Brandon drives xx miles, and let BB represent the amount Company B would charge if Brandon drives xx miles. Write an equation for each situation, in terms of x, and determine which company would be cheaper if Brandon needs to drive 45 miles with the rented truck.

-Equations:

AA=75+2x

AA=75+2x

-Company A would be cheaper.

Step-by-step explanation:

-Company A: The equation would indicate that the amount the company would charge is equal to the initial fee for the rental plus the cost per mile driven for the number of miles driven:

AA=75+2x

AA=75+2(45)

AA=75+90

AA=165

-Company B: The equation would indicate that the amount the company would charge is equal to the initial fee for the rental plus the cost per mile driven for the number of miles driven:

BB=35+3x

BB=35+3(45)

BB=35+135

BB=170

According to this, if Brandon needs to drive 45 miles with the rented truck, Company A would charge $165 and Company B would charge $170 which means that Company A would be cheaper.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%