Cost of Driving
                                                                                                                                                           
Due:
_____________________
                                                                                            Name:
_____________________________________________________________________
 
Section: __________
                                                                                                                                               
Score:
                            / 15
 
 
You decide to purchase a NEW car.  You have $2000 as a down payment and will finance the remainder at 3% for 4 years. A hybrid uses less gasoline but the initial cost is higher than a comparable conventional car.  Compare the cost of owning each car, then answer the questions.
 
 
Hybrid
Conventional
Price of Car
$23,193.00
$18,821.00
Tax
$1,275.62
$1035.15
Down Payment
$2,000.00
$2,000.00
Loan Amount
$18,468.52
$17,856.15
Payment
(Monthly for 48 months)
$497.33
$395.23
Fuel Costs
In addition to the down payment and monthly payments, you must purchase gasoline, insurance and maintenance items.  If you drive 15,000 miles each year, what is the total cost of gasoline for each car?  Assume gasoline will cost $3.75/gallon.
 
Hybrid
Conventional
Miles/gallon
48
36
Miles
15,000
15,000
Gasoline/gallon
$3.75
$3.75
Annual cost of fuel
$1,171.88
$1,562.50
Other Costs
In addition to payments and fuel, you must also insure and maintain your car.
 
Hybrid
Conventional
Insurance
$995.00
$1005.00
Maintenance/Repair
$3500.00
$3600.00
Annual other costs
$4,495
$4,605
Values from Kelly Blue Book

Create Formulas
Create a function for the annual cost of each car.  Note that the cost is different for the first 4 years (when you are making payments). Let h(x) be the function for the hybrid and c(x) the cost of the conventional car. (2 points)
                       
Create a table

Create a table from the formulas you’ve created above. (2 points)
 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Hybrid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Graph the data

The year horizontal axis is labeled with the year.  Choose an appropriate scale for the vertical axis and label.  Then plot and label both functions on the same graph below.(2 points)

Questions
 
What have you invested in each car after 4 years? (1 point)
In what year is the total cost of the cars the same? (2 points)
If you could purchase the cars without financing, what would be their cost functions? (2 point)


                
Without financing, in what year is the total cost of the cars the same? (1 points)
Which car would you purchase and why? (1 points)

Get help from top-rated tutors in any subject.

Efficiently complete your homework and academic assignments by getting help from the experts at homeworkarchive.com