Question

1. You live 20 miles away from your job, where you work five days per week (except for a two-week vacation every year). Your car gets 35 miles per gallon, on average.
   1. If the average price per gallon of gas is $2.50, how much should you budget for gas for your commute in your annual budget?
   2. You are considering a new job that is 30 miles from where you live. How much more will your commute cost you each year?
   3. If you take the new job and the price of gas rises to $3.00 per gallon, how much more will your commute cost you each year?

Answer 1

If the average price per gallon of gas is $2.50, how much should you budget for gas for your commute in your annual budget?

Annual Budget Cost for Gas = Distance * Days per week * Weeks in year * Gas Cost / Miles per galleon

Annual Budget Cost for Gas = 20 * 5 * 50 * 2.50 / 35

Annual Budget Cost for Gas = $357.14

You are considering a new job that is 30 miles from where you live. How much more will your commute cost you each year?

Change in Budget Cost for Gas = Change in Distance * Days per week * Weeks in year * Gas Cost / Miles per galleon

Change in Budget Cost for Gas = 10 * 5 * 50 * 2.50 / 35

Change in Budget Cost for Gas = $178.57

If you take the new job and the price of gas rises to $3.00 per gallon, how much more will your commute cost you each year?

New Budget Cost for Gas = Distance * Days per week * Weeks in year * Gas Cost / Miles per galleon

New Budget Cost for Gas = 30 * 5 * 50 * 3.00 / 35

New Budget Cost for Gas = $642.86

Change in Budget Cost = $642.86 - 357.14

Change in Budget Cost = $285.71