Answer
\[\$5,320\]
Work Step by Step
Annual fuel expense can be computed by dividing the Annual miles driven by miles per gallon and multiplying the result to the price per gallon.
Compute the annual fuel expenses for a hybrid car using the equation as shown below:
\[\begin{align}
& \text{Annual fuel expense}=\frac{\text{Annual miles driven}}{\text{miles per gallon}}\times \text{price per gallon} \\
& =\frac{30,000}{50}\times \$3.80\\&=\$2,280\end{align}\]
Compute the annual fuel expenses for a pickup truck using the equation as shown below:
\[\begin{align}
& \text{Annual fuel expense}=\frac{\text{Annual miles driven}}{\text{miles per gallon}}\times \text{price per gallon} \\
& =\frac{30,000}{15}\times \$3.80\\&=\$7,600\end{align}\]
The savings in annual fuel expense can be computed by subtracting the annual fuel expense of hybrid car from the annual fuel expense of SUV car. Compute the savings in fuel expenses as mentioned below:
\[\begin{align}
& \text{Savings in annual fuel expense}=\text{Annual fuel expense of pickup truck}-\text{Annual fuel} \\
& \text{ expense of Hybrid car} \\
& =\$7,600-\$2,280\\&=\$5,320\end{align}\]
Hence, the savings in annual fuel expenses is\[\$5,320\]
