Suppose that you drive 36,000 miles per year and gas averages $3.60 per gallon. a. What

Chapter 0, Problem 63

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Suppose that you drive 36,000 miles per year and gas averages $3.60 per gallon. a. What will you save in annual fuel expenses by owning a hybrid car averaging 40 miles per gallon rather than an SUV averaging 12 miles per gallon? b. If you deposit your monthly fuel savings at the end of each month into an annuity that pays 5.2% compounded monthly, how much will you have saved at the end of six years? Round all computations to the nearest dollar.

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