Exercise Module Performance Task Page 424

We are told that a family wants to buy a new car, and is considering buying the hybrid version. We are given information about both versions of the car.

To determine how long it will take to save enough money on gas to pay for the extra cost of the hybrid, we will need the following information.

• Average MPG of both versions
• Average U.S. price of regular-grade gasoline
• Cost of clocking 100 miles for both versions
• Average miles per year an American driver clocks

  Then we can make a recommendation on which car to buy.

  LE version

  The estimated miles per gallon (MPG) of the LE version is 25/35. This means that, with one gallon of gas, the car can cover a distance of 25 miles in the city or 35 miles on the highway. Let's calculate the average MPG. 25+35/2 =60/2 = 30 With one gallon of gas, the car can cover an average distance of 30 miles. The average U.S. price of regular-grade gasoline is $ 2.50 a gallon. Therefore, the LE version can cover an average distance of 30 miles at a cost of $ 2.50. We can calculate the cost of driving 100 miles. 100* $ 2.50/30 ≈ $ 8.33

  Hybrid LE version

  The estimated miles per gallon (MPG) of the Hybrid LE version is 43/39. This means that, with one gallon of gas, it can cover a distance of 43 miles in the city or 39 miles on the highway. Let's calculate the average MPG. 43+39/2 = 82/2 = 41 With one gallon of gas, the car can cover an average distance of 41 miles. As we have already stated before, the average U.S. price of regular-grade gasoline is $ 2.50 a gallon. Therefore, the Hybrid LE version can cover an average distance of 41 miles at a cost of $ 2.50. Hence, the cost of driving 100 miles is 100* $ 2.50/41 ≈ $ 6.10

  Choosing the best version for them

  Let's make a table to compare the cost per mileage. Consider the MSRP of each version.

  Mileage	Cost of the LE version	Cost of the Hybrid LE version
  0	$ 22 600	$ 25 990
  100	$ 22 608.33	$ 25 996.10
  1000	$ 22 683.30	$ 26 051
  10 000	$ 23 433	$ 26 600
  50 000	$ 26 765	$ 29 040
  100 000	$ 30 930	$ 32 090
  150 000	$ 35 095	$ 35 140
  200 000	$ 39 260	$ 38 190

  The table shows us that, for 150 000 miles, the cost is approximately $ 35 000 for both versions. Therefore, it would take 150 000 miles before enough money is saved on gas to pay for the extra cost of the hybrid. Let's consider the information taken from the U.S. Department of Transportation Federal Highway Administration (FHWA). "The average American driver clocks an average of14 000 miles each year." According to the above information, it will take more than 10 years for the family to save enough money on gas to pay for the extra cost of the hybrid. That is a long period of time and, thus, our recommendation is to buy the LE version.