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Assume you own a car that gets 20 miles per gallon on average. If you typically...

Assume you own a car that gets 20 miles per gallon on average. If you typically drive 16,000 miles per year and the price of gasoline goes from $2.00 per gallon to $3.00 per gallon, what is your additional cost per year?

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Answer #1

Since, the car gets 20 miles per gallon on average.

If i drive 16,000 miles, i need 16,000/20 = 8000 gallons.

The cost of gasoline earlier was : 8000 gallons * $2

= $16,000

The cost after the price revision is:

= 8000 * $3

= $24,000

So, the additional cost per year is $8000.

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