Question

Suppose that you drive 30, 000 miles per year and gas averages ​$4 per gallon. Complete...

Suppose that you drive 30, 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 30 miles per gallon rather than an SUV averaging 9 miles per​ gallon?

b. If you deposit your monthly fuel savings at the end of each month into an annuity that pays 4.8​% compounded​ monthly, how much will have saved at the end of eight ​years?

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