SOLUTION: Henry Ford�s Model T was originally designed and built to be run on ethanol. Today ethanol (190-proof) can be produced with domestic stills for about $0.75 per gallon. When blend

Question 340304: Henry Ford�s Model T was originally designed and built to be run on ethanol. Today ethanol (190-proof) can be produced with domestic stills for about $0.75 per gallon. When blended with gasoline costing $3.00 per gallon, a 20% ethanol and 80% gasoline mixture costs $2.55 per gallon. Assume fuel consumption at 25 miles per gallon and engine performance in general are not adversely affected with this 20-80 blend (Called E20).
a. How much money can be saved for 15,000 miles of driving per year?
b. How much gasoline per year is being conserved if one million people use the E20 fuel?

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
ethanol cost .75 per gallon.
gasoline cost 3.00 per gallon.
a 20/80 mixture of ethanol/gasoline costs .2*.75 + .8*3 = 2.55 per gallon.
fuel consumption is 25 miles per gallon.
miles driven per year is 15,000
for each person, the savings in gasoline would be .2 * 15000 / 25 gallons per year.
that equates to 120 gallons per year.
for 1 million people, the savings in gasoline would be 120 million gallons per year.
look at it another way:
15000 miles per year / 25 = 600 gallons of gasoline per year.
if only 80% of that was pure gasoline and 20% of that was ethanol, then the number of gallons of gasoline consumed is .8 * 600 = 480.
subtract 480 from 600 and you get 120 gallons of gasoline that is saved per year per person.
multiply that by 1 million and you get 120 million gallons of gasoline saved per year.

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