Question

A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the city. Traffic on the road is estimated to be 3 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project in 3 years?

Answer 1

Answer:

$2.78 per vehicle per year

Explanation:

Replacement Cost in 3 years time      $25,000,000

Total vehicles=No. of vehicles per year* No. of year =3,000,000*3=9,000,000

Toll per vehicle per year =25,000,000/9,000,000=$2.78 per vehicle