Ethanol blended with gasoline can be used to power a \"flex fueled\' car. One pa

Question

Ethanol blended with gasoline can be used to power a "flex fueled' car. One particular blend that is gaining in popularity is E 85, which is 85% ethanol and 1b% gasoline. E 85 is 80% cleaner burning than gasoline alone, and it reduces our dependency on foreign oil. But a flex fueled car cost $811 more than a conventional gasoline fueled car additionally, E 85 fuel gets 10% less miles per gallon than a gasoline only. Consider 100% gasoline fueled car that averages 30 miles per gallon and a E 85 fueled car will average about 27 miles per gallon. If either car will be driven 90,000 miles before being traded in, how much will be E 85 fuel have to cost (per gallon) to make the flex field car as economically attractive as a conventional gasoline fueled car? Gasoline cost $3.11 per gallon. Work this problem without considering the time value of money. Provide answer precision to the nearest cent.

Explanation / Answer

Let us consider E85 fuel per gallon =

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