use the following formula. a = p((1 + r/n)^nt - 1)/(r/n) suppose that you drive 50,000 miles per year and…

use the following formula. a = p((1 + r/n)^nt - 1)/(r/n) suppose that you drive 50,000 miles per year and gas averages $4 per gallon. complete parts a. and b. below. a. what will you save in annual fuel expenses by owning a hybrid car averaging 50 miles per gallon rather than an suv averaging 25 miles per gallon? $□ (round to the nearest dollar as needed.)

use the following formula. a = p((1 + r/n)^nt - 1)/(r/n) suppose that you drive 50,000 miles per year and gas averages $4 per gallon. complete parts a. and b. below. a. what will you save in annual fuel expenses by owning a hybrid car averaging 50 miles per gallon rather than an suv averaging 25 miles per gallon? $□ (round to the nearest dollar as needed.)

Answer

Explanation:

Step1: Calculate fuel consumption of SUV

Fuel - consumption of SUV = $\frac{\text{Miles driven per year}}{\text{Miles per gallon of SUV}}$. Given miles driven per year = 50000 and miles per gallon of SUV = 25. So, fuel - consumption of SUV = $\frac{50000}{25}=2000$ gallons.

Step2: Calculate fuel cost of SUV

Fuel cost of SUV = Fuel - consumption of SUV×Cost per gallon. Cost per gallon = 4. So, fuel cost of SUV = 2000×4 = 8000 dollars.

Step3: Calculate fuel consumption of hybrid car

Fuel - consumption of hybrid car = $\frac{\text{Miles driven per year}}{\text{Miles per gallon of hybrid car}}$. Miles per gallon of hybrid car = 50. So, fuel - consumption of hybrid car = $\frac{50000}{50}=1000$ gallons.

Step4: Calculate fuel cost of hybrid car

Fuel cost of hybrid car = Fuel - consumption of hybrid car×Cost per gallon. So, fuel cost of hybrid car = 1000×4 = 4000 dollars.

Step5: Calculate annual savings

Annual savings = Fuel cost of SUV - Fuel cost of hybrid car. So, annual savings = 8000 - 4000=4000 dollars.

Answer:

4000