Question

Annie Healy is leasing a car with an annual mileage cap of 15,000 miles. Mileage over this amount will cost her 15 cents per mile. What penalty will she pay if the car was leased for 24 months and she drove 35,200 miles?

Answer 1

Penalty: 780$

Explanation:

In this case, the problem states that 15,000 miles is the mileage cap limit per year (12 months), so in 2 years (24 months) it would be 30,000 miles

According to this, Annie drove 35200 miles in 2 years, so she is over the limit by 5200 miles:

35200 - 30000 = 5200 miles

now we know that the penalty over the mileage is 15 cent per mile, or simply 0.15$/mile, so we can actually multiply this amount by the miles exceeded:

$ = 0.15 $/mile * 5200 mile

$ = 780$

And this is the penalty that Annie will pay by the end of the lease