You are purchasing a new car. In order to determine which car will provide maximum savings, youâve researched miles per gallon (mpg) ratings of cars. If gas is $3.45 per gallon and you drive an average of 18,000 miles per year, the following rational equation is given:
d. The other car you are considering buying will get 33 mpg, but it costs $3000 more than the 27 mpg car. Would the additional savings in gas be worth the extra $3000 over a 5 year loan?
e. What gas mileage would your new car have to be if you saved $800 per year over your 18 mpg current car?