At greg's gas station premium gasoline costs $0.14 more per gallon than regular gasoline . if mr. adams spent $36.25 on 12.5 gallons of regular gasoline, how much would mr. adams have paid if he bought 12.5 gallons of premium gasoline instead?

Step-by-step explanation:

At Greg's Gas Station premium gasoline costs $0.14 more per gallon than regular gasoline .

Let the cost of regular gasoline be $x per gallon, then the cost of premium gasoline per gallon will be x + 0.14

If Mr. Adams spent $36.25 on 12.5 gallons of regular gasoline, it means that 12.5x = 36.25

x = 36.25/12.5 = $2.9

The cost of regular gasoline is $2.9 per gallon

Therefore, cost of premium gasoline per gallon will be 2.9+ 0.14 = 3.04

if he bought 12.5 gallons of premium gasoline instead, he would have paid

12.5× 3.04 = $38

The amount that he would have spent more will be

38 - 36.25 = $1.75

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%