To quantify a cost of time suppose that the average person d

To quantify a cost of time, suppose that the average person driving in paris values their time at 15 pounds per hour (about $24 per hour, with only one person in the car). On average the travel time in that specific zone is 40 minutes. What is the cost of travel time for that specific zone?

1) $5

2) $8

3) $10

4) $16

5) $20

Solution

In Paris, average person driving values their time at 15 pounds per hour

Average travel time in that specific zone is 40 minutes, cost of travel time would be:

For 60 minutes the cost is 15 pounds, applying the unitary method,

For 40 minutes the cost would be (15*40)/60 = 10 pounds

Now converting these 10 pounds into dollar, the cost of traravel time for that specific zone is then, $16