An Automobile Tire Is Filled with Air at a Pressure

question 93

Multiple Choice

An automobile tire is filled with air at a pressure of 27.0 lb/in² at 25°C.A cold front moves through and the temperature drops to 5°C.Assuming no change in volume,what is the new tire pressure?

• A)5.40 lb/in²
• B)25.2 lb/in²
• C)28.9 lb/in²
• D)135 lb/in²
• E)4.63 lb/in²

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Definitions:

Interest

The cost of borrowing money or the income earned from lending money, usually calculated as a percentage of the principal amount.

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.

Speculative Forward Contract

A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.