Question

Carl is approaching the Canadian border on a trip from Vermont to Montreal, Canada, and the gas in his tank is low. He wants to determine if it would be more cost efficient to buy gas before or after crossing the border. He consults Gas Buddy and finds that the cost of gas in the US is 2.81 USD per gallon, while just across the border it is $1.40 CAD per liter. The currency exchange rate is $0.750 USD per $1.000 CAD. How much more gas (in gallons) will he get for $20 USD if he buys the gas before crossing the border instead of buying it in Canada? (1.000 liter = 0.264 US gallons).

Answer 1

Let's first convert the price in Canada from liters to gallons and then compare the cost per gallon between the US and Canada.

1 liter = 0.264 US gallons

Gas price in Canada:

$1.40 CAD per liter

Convert to USD:

$1.40 CAD * $0.750 USD/CAD = $1.05 USD per liter

Now, compare the cost per gallon in the US and Canada:

Gas price in the US: $2.81 USD per gallon

Gas price in Canada (converted from liters to gallons): $1.05 USD per liter / 0.264 gallons per liter = $3.977 USD per gallon

Now, let's see how much gas Carl can get for $20 USD in each scenario:

1. In the US:

  $20 USD / $2.81 USD per gallon = 7.117 gallons

2. In Canada:

  $20 USD / $3.977 USD per gallon = 5.024 gallons

Now, find the difference in the amount of gas:

7.117 gallons (US) - 5.024 gallons (Canada) = 2.093 gallons

Therefore, Carl will get approximately 2.093 gallons more gas for $20 USD if he buys gas before crossing the border in the US.