Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 51

In 2010, the National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon (mpg) for cars and light trucks by the year 2016. The rules will cost consumers an average of $926 extra per vehicle in the 2016 model year. Assume Yolanda will purchase a new car in 2016 and plans to keep it for 5 years. How much will the monthly savings in the cost of gasoline have to be to recover Yolanda's extra cost Use an interest rate of 0.75% per month.