Suppose that you drive $32,000 miles per year and gas averages $2.50 per gallon.

Question

What will you save in annual fuel expenses by owning a hybrid car averaging 50 miles per gallon rather than an SUV averaging 12 miles per gallon.

Answer 1

32,000 mi ( 1 gal/12 mi) = 2667 gal for SUV

32,000 mi (1 gal/50 mi) = 640 gal for hybrid

so use 2667-640 = 2027 gal less

so 2027 * $2.50 = $5067.50 savings