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Homework answers / question archive / University of MalayaCHEMICAL E kek Henry Ford's Model T was originally designed and built to run on ethanol

University of MalayaCHEMICAL E kek Henry Ford's Model T was originally designed and built to run on ethanol

Economics

University of MalayaCHEMICAL E kek

Henry Ford's Model T was originally designed and built to run on ethanol. Today, ethanol (190-proof alcohol) can be produced with domestic stills for about $0.85 per gallon. When blended with gasoline costing $4.00 per gallon, a 20% ethanol and 80% gasoline mixture costs $3.37 per gallon. Assume fuel consumption at 25 mpg and engine performance in general are not adversely affected with this 20-80 blend (called E20). (1.3)

a. How much money can be saved for 15,000 miles of driving per year?

b. How much gasoline per year is being converted if one million people use the E20 fuel?

 

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Answer:

A

When driving 15 000 miles with pure gasoline, the cost is :

15000*4/25= $2400

When one were to drive the same distance with E20, the cost is :

15000*3.37/25= $2022

The difference between them is:

2400 - 2022 = $378.

=> saving of $378

B.

If 100% gasoline, driving is 15 000 miles in a year with average consuming:

15000/25=600 gallons of gasoline.

If 20% ethanol, the gasoline conserved is:

600*0.20= 120 gallons per person.

Now for 1 million people it is

120*1million = 120 million gallons.

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