A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $900 on the sticker price of a new car. For a particular model averaging 27 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer's interest rate is 9% per year? The car will be driven 110,000 miles uniformly over an eight-year period. The cost of gasoline that makes this option affordable is ______ per gallon
A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $900 on the sticker price of a new car. For a particular model averaging 27 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer's interest rate is 9% per year? The car will be driven 110,000 miles uniformly over an eight-year period. The cost of gasoline that makes this option affordable is ______ per gallon
Chapter3: Financial Statements, Tools, And Budgets
Section3.1: Financial Values, Goals, And Strategies
Problem 3CC
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Question
A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $900 on the sticker price of a new car. For a particular model averaging 27 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer's interest rate is 9% per year? The car will be driven 110,000 miles uniformly over an eight-year period. The cost of gasoline that makes this option affordable is ______ per gallon
Transcribed Image Text:Compound
Amount
Factor
To Find F
Present
Worth Factor
Compound
Amount
Present
Capital
Factor
Worth
Factor
To Find P
To Find F
To Find P
Sinking Fund Recovery
Factor
To Find A
Factor
To Find A
Given P
Given F
Given A
Given A
Given F
Given P
N
F/P
P/F
F/A
P/A
A/F
A/P
1
1.0900
0.9174
1.0000
0.9174
1.0000
1.0900
2
1.1881
0.8417
2.0900
1.7591
0.4785
0.5685
3
1.2950
0.7722
3.2781
2.5313
0.3051
0.3951
4
1.4116
0.7084
4.5731
3.2397
0.2187
0.3087
5
1.5386
0.6499
5.9847
3.8897
0.1671
0.2571
6
1.6771
0.5963
7.5233
4.4859
0.1329
0.2229
7
1.8280
0.5470
9.2004
5.0330
0.1087
0.1987
8
1.9926
0.5019
11.0285
5.5348
0.0907
0.1807
9
2.1719
0.4604
13.0210
5.9952
0.0768
0.1668
10
2.3674
0.4224
15.1929
6.4177
0.0658
0.1558
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