A Model for How Long Our Coal Resources Will Last

question 89

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. What percent increase in consumption of coal will deplete the resources in 38.1 years? Round to the nearest tenth of a percent.

• A)9.9%
• B)8.7%
• C)10.5%
• D)10.1%
• E)8.1%

---

Definitions:

Bond Discount Amortized

The process of gradually writing off the discount on bonds payable over the life of the bonds, affecting interest expense on the income statement.

Bond Premium Amortization

The process of gradually expensing the premium paid over the par value of a bond over its life.

Effective Yield

The total yield of a bond once all charges are factored in, expressed as an annual percentage.