Problem 231 algorithmic Question Help A producer of syntheti

Problem 2-31 (algorithmic) Question Help A producer of synthetic motor oil for automobiles and light trucks has made the following statement: \"One quart of Dynolube added to your next oil change will increase fuel mileage by two percent. This one-time additive will improve your fuel mileage over 50,000 miles of driving.\" a. Assume the company\'s claim is correct. How much money will be saved by adding one quart of Dynolube if gasoline costs $4.12 per gallon and your car averages 21 miles per gallon without the Dynolube? b. If a quart of Dynolube sells for $20.06, would you use this product in your automobile? will be saved. (Round to the nearest cent.)

Solution

A) One quart of Dynolube improves fuel mileage by 2% for 50,000 miles.

Car average without Dynolube = 21 miles per gallon

Car average with Dynolube = 21.42 miles per gallon

Fuel required to travel 50,000 miles when mileage 21 miles per gallon = 50000/21 = 2381 gallons.

Cost of Fuel = 2381*4.12 = $9809.72

Fuel required to travel 50,000 miles when mileage 21.42 miles per gallon = 50000/21.42 = 2334.27 gallons

Cost of Fuel = 2334.27*4.12 = $9617.19

Total Savings = 9809.72-9617.19 = $192.53

B)

Price of quart of dynolube = $20.06.

Since this is much lower than the savings, yes I would use the product.