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Annual depreciation$2,500 Annual mileage 13,200Current year's loan interest$650 Miles per gallon 24Insurance$680 License and registration fees$65Average gasoline price$3.50per gallon Oil changes/repairs$370Parking/tolls$420 a. Calculate total annual operating cost of the motor vehicle.

User Surya Tej
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1 Answer

2 votes

Answer:

Total annual operating cost = $6,610

Step-by-step explanation:

Given;

Annual depreciation = $2,500

Annual mileage = 13,200

Current year's loan interest = $650

Miles per gallon = 24

Insurance = $680

License and registration fees = $65

Average gasoline price = $3.50 per gallon

Oil changes/repairs = $370

Parking/tolls = $420

Now,

The cost of gas for annual mileage =
(13,200)/(24)*\$3.50

= $1,925

Thus,

Total operating cost =

Annual depreciation $2,500

+ cost of gas for annual mileage $1,925

+ loan interest $650

+ Insurance $680

+ License and registration fees $65

+ Oil changes/repairs $370

+ Parking/tolls $420

=================================================

Total annual operating cost $6,610

User Monoy Suronoy
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