Question

P[(1+r/n)nt-1]/A=r/n. Suppose that you drive 40,000 miles per year and gas average $4 per gallon. Complete parta . and b. A. what will you save in annual fuel expenses by owning a hybrid car averaging 40 miles per gallon rather than an SUV averaging 16 miles per gallon? (Round to the nearest dollar as needed)

Answer 1

To find the annual fuel savings, you need to calculate the fuel expenses for each car and then subtract them. By owning a hybrid car averaging 40 miles per gallon instead of an SUV averaging 16 miles per gallon, you will save $6,000 in annual fuel expenses.

Step-by-step explanation:

To find the annual fuel savings, we need to calculate the fuel expenses for each car and then subtract them.

Step 1: Calculate the fuel expenses of the SUV

The SUV averages 16 miles per gallon, so for 40,000 miles, it will need 40,000 / 16 = 2,500 gallons of gasoline.

The fuel expenses for the SUV will be 2,500 gallons * $4 per gallon = $10,000.

Step 2: Calculate the fuel expenses of the hybrid car

The hybrid car averages 40 miles per gallon, so for 40,000 miles, it will need 40,000 / 40 = 1,000 gallons of gasoline.

The fuel expenses for the hybrid car will be 1,000 gallons * $4 per gallon = $4,000.

Step 3: Calculate the savings

The annual fuel savings will be $10,000 - $4,000 = $6,000.

Therefore, by owning a hybrid car averaging 40 miles per gallon instead of an SUV averaging 16 miles per gallon, you will save $6,000 in annual fuel expenses.