A Model for How Long Our Coal Resources Will Last

question 4

Multiple Choice

A model for how long our coal resources will last is given by where r is the percent increase in consumption from current levels of use and T is the time (in years) before the resources are depleted. If our consumption of coal increases by 14% per year, in how many years will we deplete our coal resources?

• A)88 years
• B)14 years
• C)29 years
• D)67 years
• E)39 years

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Definitions:

Recapture

A process in which previously deducted or credited amounts are added back to taxable income or tax liability under certain conditions.

Short-term Capital Gain

A profit from the sale of an asset held for one year or less, taxed as ordinary income.

Long-term Capital Loss

A loss realized from the sale of a capital asset held for more than one year, which can offset capital gains and reduce taxable income.

Recognized Gains

Profits from the sale of an asset that are realized and subject to capital gains tax.