I have tried answering this problem every which way, but I can't seem to solve it correctly. My instructor wants this to be solved with the...

Hello!

This question actually is a mathematical one. We given a relatively simple formula and have to substitute the known values into it.

The only value which is not given directly is the slope. We cannot use 45 (degrees) for the slope, but have to compute it.

If we imagine a right triangle with one acute angle of 45 degrees, then the second acute angle is also 45 degrees. Therefore a triangle is an isosceles one, its legs are equal to some x. So the tangent of 45 degrees is x/x=1, and this tangent is the same as the slope of 45-degrees inclined line.

Thus a=1 and we can now substitute:

Un = 6% - 1*(10% - 8%) = 6% - 2% = 4%,

and the answer is a. 4%.

Comments

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