Question
Suppose you are shopping for a new car, and you've narrowed your search to two options: A $25,656 regular car whose fuel consumption is 28
Suppose you are shopping for a new car, and you've narrowed your search to two options:
A $25,656 regular car whose fuel consumption is 28 miles per gallon.
A $27,839 hybrid car whose fuel consumption is 43 miles per gallon.
If the cost of gas is $2.44 per gallon, how many miles would you have to drive the hybrid car in order for the gas savings to recover the difference in the cost of the two cars?
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Introduction To Derivatives And Risk Management
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