Question

In San Francisco, 1 US gallon of petrol costs $3.34

In Manchester, 1 litre of petrol costs 107.6p
1 US gallon =3.785 litres
£1=$1.46
In which city is petrol better value, San Francisco or Manchester?
You must show your working.

Answer 1

San Francisco

Step by step explanation:

Given that 1 US gallon of petrol costs $3.34 in San Francisco, and 1 litre of petrol costs 107.6p in Manchester, with conversion rates being 3.785 litres per gallon and $1.46 per 1£, you want to know the city where the value is better.

Comparable cost

We can compare the costs by converting the rate in Manchester to a dollar cost per gallon.

The cost of 1 litre in Manchester is £(107.6/100) = £1.076. The cost of 1 US gallon of petrol in Manchester is 3.785 × £1.076 = £4.07226. Converted to dollars, that is 4.07266 × $1.46 ≈ $5.95.

In San Francisco, the cost of 1 US gallon is $3.34.Therefore, the cost of 1 US gallon of petrol in San Francisco is a better value. The price of petrol is higher in Manchester than in San Francisco.