During a 12-month period, gas prices increased from $3.399 per gallon to $4.659. What is the percent increase, to the nearest tenth of a percent?
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- If gasoline prices have increased over the past 32 years from 25.9 cents per gallon to $3.459 per gallon, what is the average annual rate of increase?The average price of the gasoline in 2021 was $3.01 per gallon. In 2001, the average price was $1.46. What was the average annual rate of increase in the price of gasoline over this 20-year period?The demand for a product during the next ten years will be such that revenues will be $100,000 the first year and will increase by $10,000 each year thereafter. If inflation is assumed to be 6% per yuear and the company uses 10% in its economic studies, what is the present worth of the revenues expressed in present dollars?
- Suppose that an oil well is expected to produce 12, 00,000 barrels of oil during its first production year. However, its subsequent production (yield) is expected to decrease by 9% over the previous year's production. The oil well has a proven reserve of 10,500,000 barrels.(a) Suppose that the price of oil is expected to be $120 per barrel for the next six years. What would be the present worth of the anticipated revenue trim at an interest rate of 10% compounded annually over the next six years?(b) Suppose that the price of oil is expected to start at $120 per barrel during the first year, but to increase at the rate of 3% over the previous year's price. What would be the present worth of the anticipated revenue stream at an interest rate of 10% compounded annually over the next seven years?Apeng placed ₱34,400 in an investment firm. If this amounted to ₱52,540 after 4 years and 8 months, find the rate used if it is converted monthly.What is the formula for forecast of sales revenue for 20 years at an increase of revenue of 20% each year?
- NMTeX Oil owns several gas wells in Carlsbad, NM. Revenue from the wells has been increasing according to an arithmetic gradient for the past 5 years. The revenue in year 1 from well no. 24 was $390,000 and it increased by $15,000 each year thereafter. Determine (a) the revenue in year 3, and (b) the equivalent annual worth of the revenue through year 5. Assume an interest rate of 10% per year.A natural gas well is projected to produce $200,000 in profit during its first year of operation, $190,000 the second year, $180,000 the third year, and so on, continuing this pattern. If the well is expected to produce for a total of 10 years, and the effective annual interest rate is 8%, which of the following most closely represents the present worth of the well? a. $1,770,000. b. $1,508,000c. $1,253,000. d. $1,082,000.The final tally is in: This year’s operating costs were down $100,000, a decrease directly attributable to the $520,000 investment in the automated materials handling system put in place at the beginning of the year. If this level of annual savings continues for five more years, resulting in six total years of annual savings, what compounded annual rate of return will that represent? If these annual savings continue for nine more years, what compounded annual rate of return will that represent? (You may ignore income taxes.)
- You have just completed the first year of operation for your business andhave the following information: sales, $200,000; cost of goods, $140,000;rent, $18,000; utilities, $8,400; insurance, $2,000; equipment, $3,500;interest, $10,000. Your forecast indicates that your sales will increase by20 percent. Your rental agreement provides for a 3 percent increase peryear. You read an article indicating that utility costs in your area willincrease by 10 percent next year. You just received a notice from yourinsurance company stating that your quarterly premium is increasing to$600 beginning the first quarter of next year. Your equipment expense willnot change, but the amortization schedule on your current loan indicatesthat interest expense for next year should be $9,000.a. Using this data, construct an actual income statement for this year and a proforma income statement for next year.b. By what percentage did your net income change?c. What are your current profit margin and your pro forma…Income from sales of certain hardened steel connectors was P400,000 in the first quarter, P410,000 in the second, and amounts increasing by 10,000 per quarter through year 4. What is the equivalent uniform amount per quarter if the interest rate is 12% per year compounded quarterly? Please show the solution. Solutions in excel are acceptable.A contractor desires to replace a unit of equipment in 8 years and expects to need $300,000 (at that time) to do so. At a growth of 6% per year, how much should be set aside?