Set Up an Equation That Can Be Used to Solve

question 56

Multiple Choice

Set up an equation that can be used to solve the problem. Solve the equation and answer the question asked.
-An airplane flies 480 miles with the wind and 320 against the wind in the same length of time. If the speed of the wind is 20 mph, what is the speed of the airplane in still air?

• A) 90 mph
• B) 40 mph
• C) 100 mph
• D) 105 mph

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Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows money to finance a lease or purchase.

Actuarial Information

Data and analysis provided by actuaries, concerning the evaluation of financial risks, especially those related to insurance and pensions, using mathematics, statistics, and financial theories.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, allowing the lessee to benefit from asset depreciation and interest expense deductions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in discounting cash flows.