Question

The table above shows the relative investment in alternative energy sources in the United States by type. One column shows the relative investment in 2007 of $$\$75$$ million total invested in alternative energy. The other column shows the projected relative investment in 2017 given current trends. The total projected investment in alternative energy in 2017 is $$\$ 254$$ million. Suppose that a new source of alternative energy, Cold Fusion, is perfected. It is projected that by 2017 that $$\$ 57$$ million will be invested in Cold Fusion in the United States, without any corresponding reduction in investment for any other form of alternative energy. What portion of the total investment of alternative energy in the United States will be spent on biofuels? A) \(0.18\) B) \(0.22\) C) \(0.28\)

Short answer

The portion of the total investment in alternative energy spent on biofuels in the United States in 2017 can be calculated using the formula: \(\frac{0.35* 254}{311} \approx 0.2849\). The closest option to the calculated value is 0.28, which is answer choice (C).

Step-by-step solution

Incorporate the Investment in Cold Fusion

First, we need to find the new projected total investment in alternative energy for 2017, including the investment in Cold Fusion. The original projected total investment for 2017 is \$254 million and an additional \$57 million will be invested in Cold Fusion. Therefore, the projected total investment in alternative energy in 2017 after incorporating Cold Fusion can be calculated using the following: Projected total investment in alternative energy in 2017 (without Cold Fusion) + Investment in Cold Fusion \[ 254 + 57\]

Calculate Projected Biofuels Investment

Next, we need to find the projected investment for biofuels in 2017. From the table, we know that biofuels account for a relative investment of 0.35 in 2017. To find the actual investment in biofuels for 2017, we will use the following formula: Projected Investment in biofuels = 0.35 * (Projected total investment in alternative energy in 2017 without Cold Fusion) \[ 0.35 * 254 \]

Calculate Portion of Total Investment for Biofuels

Now, we will calculate the portion of the total investment spent on biofuels by dividing the projected investment in biofuels by the new total investment in alternative energy (including Cold Fusion): Portion of total investment for biofuels = Projected Investment in biofuels / New total investment in alternative energy \[ \frac{0.35* 254}{254 + 57} \]

Simplify and find the answer

Finally, we will simplify the expression in step 3 and find the final answer from the given options. \[ \frac{0.35* 254}{311} \approx 0.2849 \] The closest option to the calculated value is 0.28, which is answer choice (C).

Key concepts

Alternative Energy Investment

Investing in alternative energy includes funding energy sources that do not rely on fossil fuels. These investments are crucial as they help in reducing the negative environmental impacts of energy production. There are various forms of alternative energy, like solar, wind, geothermal and biofuels. Each has its own benefits and challenges.
When planning investments in alternative energy, it's important to look at long-term trends, technology advancements, and government policies which can enhance or impede sector growth. Investment plays a vital role in not only driving innovation but also making alternative energy accessible and affordable to a wider population.
With increased focus and gradual policy adjustments worldwide, the projected investments in alternative energy have been growing, thus promising a more sustainable future.

Biofuels

Biofuels are fuels derived from biomass, such as plant materials and animal waste. They are a form of renewable energy intended to reduce carbon emissions. Types of biofuels include ethanol, biodiesel, and biogas, each with specific uses and production methods.
Biofuels are essential because they provide an alternative to gasoline and diesel, thus reducing reliance on fossil fuels. The market for biofuels has been expanding due to increasing technological advancements and the need for sustainable energy solutions.
Projects focusing on biofuels investment are attracting attention because they promise not only to improve energy security but also support agriculture and rural development.

Percentage Calculation

Percentage calculation is a mathematical method used to determine parts of a whole in terms of 100. This concept is fundamental when analyzing data, especially in investments and budgeting.
For example, to determine the share of a specific type of energy investment within the total, we can use the formula: \[ \text{Percentage} = \left( \frac{\text{part}}{\text{total}} \right) \times 100 \% \] This formula helps in allocating budgets, assessing market shares, and understanding financial data better. It provides clarity in comprehending proportionate parts of investments or other numeric data.

Cold Fusion

Cold Fusion is a theoretical energy source that promises to produce nearly limitless energy, with little to no input resources and waste. If perfected, it has the potential to revolutionize energy production by providing a clean, safe, and virtually unlimited power source.
While still under scientific scrutiny and development, the idea of Cold Fusion continues to attract research interest. Investment in such innovative technologies is paramount even if they are in the conceptual phase, since a breakthrough could lead to significant economic and environmental benefits.
Understanding Cold Fusion requires looking at its theoretical efficiencies and the potential it holds in replacing existing energy technologies, thus transforming the energy landscape.