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16.6Scotch whisky increases in value as it ages, at least up to a point. For any period of time, t, the value of a barrel is given by V = 100 t － 6 t 2 . This function implies that the proportional rate of growth of the value of the scotch is (100 － 12 t )/V. Graph this scotch value function.
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16.6Scotch whisky increases in value as it ages, at least up to a point. For any period of time, t, the value of a barrel is given by V = 100t－6t2. This function implies that the proportional rate of growth of the value of the scotch is (100－12t)/V. • Graph this scotch value function. • At what value of t is the barrel of scotch most valuable. • If the real interest rate is 5 percent, when should this distiller bottle the scotch for immediate sale? • How would the distiller’s decision change if the real interest rate were 10 percent? (Hint: You will have to use the quadratic equation to solve part d here.)
