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Use the following formula. A = P [ ( 1 + r n ) n t - 1 ] ( r n ) Suppose that
Use the following formula.
Suppose that you drive miles per year and gas averages $ per gallon. Complete parts a and b below.
a What will you save in annual fuel expenses by owning a hybrid car averaging miles per gallon rather than an SUV averaging miles per gallon?
$
Round to the nearest dollar as needed.
b If you deposit your monthly fuel savings at the end of each month into an annuity that pays compounded monthly, how much will have saved at the end of nine years?
$
Round to the nearest dollar as needed.
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