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You need gas for your car, and just as you are approaching where you normally get gas, the radio station announces that the CheapGas station four miles away is selling gas $0.37 per gallon cheaper.

Required:
Would you travel the four miles to CheapGas to save money? In addition to a definitive yes or no answer, provide the mathematical calculations you used in making the decision and then explain in a few sentences why you would travel to CheapGas or why you would not travel to Cheap Gas. There is not one correct answer, but the reasoning provided must be correct to support your decision.

Respuesta :

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Answer: Yes

Step-by-step explanation:

Given that:

Distance from present location to CheapGas = 4 miles

Price of gas at CheapGas is $0.37 cheaper

Hence, the decision to make a U-turn back to CheapGas or continue on intended destination will rely on two factors ;

1) The number of gallons of gas to purchase

2) The cost of gas required to return to cheap gas.

If a substantial amount of gas is to be purchased, may be 50, 100 or more gallons, the amount saved by making a turn back to cheapGas and purchase gas at $0.37 cheaper per gallon.

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