Question

use the following formula.
$a = \frac{p\left\left(1 + \frac{r}{n}\
ight)^{nt} - 1\
ight}{\left(\frac{r}{n}\
ight)}$
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?
$\square$
(round to the nearest dollar as needed.)

Explanation:

Step1: Calculate fuel for SUV

To find the gallons of gas used by the SUV, divide total miles by miles per gallon. So, for the SUV: $\frac{50000}{25} = 2000$ gallons.

Step2: Calculate fuel cost for SUV

Multiply gallons by cost per gallon. So, cost for SUV: $2000 \times 4 = 8000$ dollars.

Step3: Calculate fuel for hybrid

For the hybrid car: $\frac{50000}{50} = 1000$ gallons.

Step4: Calculate fuel cost for hybrid

Cost for hybrid: $1000 \times 4 = 4000$ dollars.

Step5: Calculate savings

Subtract hybrid cost from SUV cost: $8000 - 4000 = 4000$ dollars.

Answer:

$\$4000$