How long will it take to recoup the $1,800 price difference between a hybrid and a regular sedan assuming gas costs $3 per gallon, you drive 12,000 miles per year, and the hybrid gets 45 miles per gallon (MPG) on the highway and the regular sedan gets 30 MPG on the highway?

Question

Quizplus · Accepted Answer

To find the time to recoup the $1,800 difference, calculate the annual savings on gas. The hybrid uses 12,000/45 = 267 gallons per year, while the regular sedan uses 12,000/30 = 400 gallons per year. The savings is (400 - 267) * $3 = $399 per year. $1,800 / $399 ≈ 4.5 years.

How Long Will It Take to Recoup the $1,800 Price