Business
Bebeny214
2

A used-car costs $5,000. You figure you can get 4 years out of it. You drive 10,000 miles per year. Your car insurance costs $1,200 per year. You figure you'll spend $400 per year on maintenance. Gas costs $4 per gallon, and the car gets 25 miles per gallon. What will your average cost (all costs included) per mile be over the 4 years?

+0
(1) Answers
smithshanell13

Solutions  We know a used car is $ 5,000. You can drive 10, 000 miles per year in that car for 4 years. The care insurance per year would be $ 1,200. You know that you will spend $ 400 on maintenance. The gas will cost $ 4 per gallon and the car gets 25 miles per gallon.   ⇒ (car) = $ 5,000  ⇒ (Miles per year) = 10,000  ⇒ ( Insurance per year) = $ 1,200  ⇒ ( Maintenance ) = $ 400 ⇒ (Gas) = $ 4 per gallon  To solve this problem we have to do Total Cost = Cost Car + 4 × Car Insurance + 4 × Maintenance + 4 × Miles/Year × (cost/gallon) / (miles/gallon)  We multiply by 4 since he figured out the car will last 4 years.  ≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡ Calculations  Total Cost = Cost Car + 4 × Car Insurance + 4 × Maintenance + 4 × Miles/Year × (cost/gallon) / (miles/gallon)   Total Cost = (car) $5,000 + (Car Insurance) 4 × $1200 + (Maintenance) 4 × $400 + (cost/gallon) 4 × 10,000 (miles/gallon)  × $4/25 = $17,800  Now we have to find per mile  We know that 10,000 miles = 1 year  To convert to 4 years multiply by 4 = 40,000 miles Cost/Mile = $17,800 / (40,000 miles) = $0.445 / mile = 44.5 cents per mile. Answer = 44.5 cents per mile.

Add answer