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It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol and 15% gasoline).
It costs
$30,000
to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol and 15% gasoline). If the station makes a profit of
$0.06
per gallon from selling E85 and sells an average of
21,000
gallons of E85 per month, how many months will it take for the owner to recoup her
$30,000
investment in the retrofitted pumps? The interest rate is
1%
per month.
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