Mathematics, 23.02.2020 06:06 xojade
You are considering two cars that you plan on keeping for 5 years. One has an EPA combined city and highway rating of 33 mpg. The second has an EPA rating of 36 mpg. Suppose gasoline costs $3.41 per gallon and you drive 10,000 miles each year.
(a) How much (in dollars) will you save in 1 year by purchasing the 36 mpg car? (Enter a number. Round your answer to the nearest cent.)
(b) If you deposit that amount at the end of each year for the 5 years of ownership into an account that earns 4.1% compounded annually, how much (in dollars) will you save over 5 years? (Enter a number. Round your answer to the nearest cent.)
Answers: 2
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